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This study analyzed the impact of technological progress and digitization on Ghana's economy using panel data for the period 2009–2019. Technological progress and economic growth inter-dependency was analyzed in two steps. First, the relation was tested using Augmented Dickey–Fuller method. Second, we estimated the long-run relation between the variables by using Engel Granger and Error Correction models. The results indicate that adopting technology or digitizing the economy has the potential to drive sustainable growth and development. In particular, it was noted that ICT investments drive high productivity rates and faster economic growth. In sum, technological progress and digitization have the potential to foster significant growth and therefore must be given high credence in the planning and designing of development programmes. This paper contributes to development theories on the role that ICT plays in economic growth and development. [ABSTRACT FROM AUTHOR]

• The diffusion of the advanced digital production technologies associated with Industry 4.0 remains limited among firms in developing economies. • Firms' participation in GVCs is positively and significantly associated with the adoption of Industry 4.0 technologies. • The adoption of Industry 4.0 technologies is associated with a labor productivity premium at the firm level. The adoption of new technology is a key driver of firm performance and economic development. Yet the process of transferring and adopting new technologies is not seamless, particularly when the pace of technological change accelerates, and more advanced capabilities are required for the effective operation of new technology. In this paper we develop a framework for the analysis of the drivers of adoption of advanced digital production technologies associated with Industry 4.0 in developing economies. In particular, we ask whether firms' participation to global value chains (GVCs) can facilitate the adoption of Industry 4.0 technologies in manufacturing sectors. Using a novel UNIDO database on firms' adoption of different generations of production technology in Ghana, Viet Nam, and Thailand, we find that firms' participation to GVCs is positively associated with the adoption of Industry 4.0 technologies, and that adoption is positively associated with firm-level performance. [ABSTRACT FROM AUTHOR]