DIGITAL INCLUSION AND SUSTAINABLE ECONOMIC GROWTH IN AFRICA: EVIDENCE FROM PANEL FIXED-EFFECTS AND QUANTILE REGRESSION MODELS (2019–2024)

This study examines the relationship between digital inclusion, trade openness, inflation, and sustainable economic growth across 40 African nations during the period 2019–2024. Utilizing panel data from the World Bank World Development Indicators, we construct a composite Digital Inclusion Index through Principal Component Analysis (PCA), integrating internet penetration, mobile cellular subscriptions, and fixed broadband subscriptions. Our empirical framework combines country fixed-effects ordinary least squares (OLS) with clustered standard errors and median quantile regression to assess the robustness of findings. Descriptive statistics reveal substantial heterogeneity in digital infrastructure across the continent. The correlation analysis confirms the absence of severe multicollinearity among explanatory variables. Fixed-effects estimation indicates that trade openness exerts a statistically significant positive effect on per capita GDP growth, while inflation demonstrates a significantly negative impact. The digital inclusion index yields positive but statistically insignificant coefficients in both the fixed-effects specification and the quantile regression. These findings suggest that while digital infrastructure expansion alone may not guarantee immediate growth dividends in the African context, trade integration and macroeconomic stability remain pivotal determinants of sustainable economic performance. The results carry important implications for policymakers seeking to leverage digital transformation as a catalyst for inclusive growth.