Growth Gap between China and Africa: Do Digital Technologies Matter?

Abstract

This study aims to appreciate the impact of the digital technological on the growth gap between China and thirty African countries for the 2000–2016 period. In this case, the digital technological is captured by two variables. The first is internet penetration and is exports of information and telecommunication goods (in percentage of total exports). Whether digitisation is measured with internet penetration rate or exports of information and telecommunication goods, Kao (1999) and Pedroni (2004) cointegration tests have been performed to appreciate the existing of the long run effect between endogenous and exogenous variables. Moreover, pool mean group estimates has been used. The main results suggest that the digital gap between China and Africa has a positive and significant effect on the economic growth gap. Thus, increasing investments in this sector in Africa would enable the continent to benefit from externalities produced in order to reduce this gap and pave the way for emergence.