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The aim of this paper is to analyse the determinants for digital divide in Sub-Saharan Africa (SSA) by considering inequalities in internet use and broadband subscriptions. The study considers 41 countries in the region which are geographically linked, and it allows for spatial interdependence. It also accounts for differences in demographic characteristics as well as social, political and economic infrastructure which affect ICT access and use. Globally, about half of the world's population is connected to the internet whereas the remaining half, i.e. about 3.8 billion people, are not (yet) connected. The problem is more severe in developing countries compared to developed countries; it is said to be unsatisfactory in SSA compared to other countries. We apply a spatial panel analysis using the spatial Durbin model (SDM) specifications for 451 observations from 2006 to 2016. Our estimation results show that there is a strong spatial interdependence among SSA, implying that internet access and broadband subscriptions in one country are affected by internet access and broadband subscriptions in another country, most likely due to spillover effects. Our results reveal that GDP per capita, gross capital formation, political stability, regulatory efficacy and electricity infrastructure directly affect the digital divide. Moreover, GDP per capita, population growth, government consumption, trade openness, and electricity infrastructure also indirectly affect the digital divide through spillover effects. Regarding policy implications we suggest that SSA governments should work closer together in ensuring internet openness and to increase the level of coordination between their countries in order to ensure digital inclusion in their countries. • Analyses digitalization and digital divide determinants in 41 Sub-Saharan African (SSA) economies. • Employs spatial Durbin model for 41 geographically connected SSA countries. • Finds strong interdependence of internet usage and access across SSA countries. • GDP per capita, gross capital formation, political stability, regulatory efficacy and electricity infrastructure are important for digitalization. • SSA governments should work closer in ensuring internet openness and increase the level of coordination between countries. [ABSTRACT FROM AUTHOR]

This paper examines the contribution of digitalization to economic growth of Sub Saharan Africa (SSA) in comparison with the Organization for Economic Cooperation and Development (OECD) economies. The main reason for comparing the most and the least developed countries to measure the effects of digitalization is to have an insight of whether such effects depend on the levels of development of the country. New technologies in Sub Saharan Africa are assumed to have played significant roles in economic activity, including accessibility of communications, which was impeded by poor infrastructure, accommodation of the poor majority who were initially financially excluded from mobile banking and participation of small and medium enterprises (SMEs) in e-commerce. On the other hand, due to the effects of digitalization, least developed countries in SSA have been facing a premature deindustrialization. This study employs a panel dataset consisting of 11 years from 2006 to 2016 for 41 SSA and 33 OECD economies and we use the generalized linear methods of moments (GMM) estimators. The results show that digitalization has a positive contribution to economic growth in both groups of countries. The effect of broadband internet is minimal for SSA compared to OECD countries, whereas the impact of mobile telecommunications is higher in SSA compared to the OECD counterpart. These results are particularly interesting as less advanced technologies create more opportunities in the least developed countries since there is more space for improvement. With respect to policy implications, this study recommends that SSA governments should invest more in ICT along with other infrastructures, so as to benefit from digitalization and to realize significant economic growth. • Examines the contribution of digitalization to economic growth of Sub Saharan Africa (SSA) in comparison with the OECD economies. • Analyses the positive and negative effects of digitalization developing countries. • Employse a panel data set for 74 countries and uses GMM estimators. • Finds that digitalization has a positive contribution to economic growth in both groups of countries. • Finds that broadband internet and mobile telecommunications have different impacts for OECD and SSA countries. [ABSTRACT FROM AUTHOR]