Digital leapfrogging or digital divide? Internet penetration and structural transformation in Africa

Purpose This study aims to investigate whether digitalization accelerates structural transformation in African economies or reinforces existing structural inequalities. Design/methodology/approach Using panel data on African countries and a rigorous fixed-effects framework, complemented by dynamic System GMM estimation, the analysis provides a direct test of the digital structural transformation hypothesis. Findings The results show a strong and robust positive effect of internet penetration on structural transformation, even after controlling for key macroeconomic and demographic factors. Sectoral evidence reveals a clear mechanism: increased internet access reduces the share of agriculture while significantly expanding the services sector, confirming that digitalization actively reallocates economic activity across sectors. Crucially, interaction results show that the impact of internet penetration is stronger in slower-growing, less advanced economies, providing compelling evidence in favor of the digital leapfrogging hypothesis rather than the digital divide. Originality/value These findings establish digital infrastructure as a central driver of modern structural change and suggest that expanding internet access can serve as a powerful policy tool for accelerating inclusive development in Africa.

Authors

Institutions

Publication Details

Journal
Digital Policy Regulation and Governance
Published
2026-11-05
DOI
https://doi.org/10.1108/dprg-05-2026-0293
Primary Topic
Economic Growth and Development
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
article

Digital leapfrogging or digital divide? Internet penetration and structural transformation in Africa

Enock Mwakalila
Digital Policy Regulation and Governance
Economic Growth and Development
article

Digital leapfrogging or digital divide? Internet penetration and structural transformation in Africa

Enock Mwakalila
article en

Abstract

Purpose This study aims to investigate whether digitalization accelerates structural transformation in African economies or reinforces existing structural inequalities. Design/methodology/approach Using panel data on African countries and a rigorous fixed-effects framework, complemented by dynamic System GMM estimation, the analysis provides a direct test of the digital structural transformation hypothesis. Findings The results show a strong and robust positive effect of internet penetration on structural transformation, even after controlling for key macroeconomic and demographic factors. Sectoral evidence reveals a clear mechanism: increased internet access reduces the share of agriculture while significantly expanding the services sector, confirming that digitalization actively reallocates economic activity across sectors. Crucially, interaction results show that the impact of internet penetration is stronger in slower-growing, less advanced economies, providing compelling evidence in favor of the digital leapfrogging hypothesis rather than the digital divide. Originality/value These findings establish digital infrastructure as a central driver of modern structural change and suggest that expanding internet access can serve as a powerful policy tool for accelerating inclusive development in Africa.

Digital Policy Regulation and Governance
Mzumbe University (TZ)
Openalex Percentile: Top 10%
Economic Growth and Development
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Laika access coming soon