Assessing the role of globalization and technology adoption in the economic growth of African countries
摘要
Globalization has played a pivotal role in reshaping the landscape of African countries and has increasingly influenced the socio-economic lives of the people. Technology adoption, a key component of globalization, offers significant opportunities for African nations to leapfrog traditional industrialization stages, thereby boosting productivity, fostering innovation, and enhancing competitiveness in the global market. This research study investigates examines the effect of globalization and technology adoption on the economic growth of African countries. The control variables in this study include foreign direct investment, gross fixed capital formation, population and institutional quality, and the scope covers from 2013 and 2022. The study covers twenty-nine (29) African countries and deploys secondary data from the World Development Index (WDI). The analytical framework for the study entails pre-estimation procedures like panel unit root and cointegration analysis. The panel data regression analysis utilizes the dynamic Generalized Method of Moment (GMM). The findings reveal that globalization has positive and significant effect on economic growth in Africa. Conversely, technology adoption has a negative and significant effect on economic growth. Additionally, globalization has a positive and significant impact on technology adoption. Finally, the moderating effect of globalization and technology adoption on economic growth is positive but not significant. The study recommends, among others, that the African continent should improve investment in skills development and general education with an emphasis on science and technology. Also, the study suggests improved investment in infrastructure while creating the enabling environment for research and development to enhance the application of technology and innovation in the continent.