Impact of Technology on the Economies of Sub-Saharan African Countries
Background & Problem
Today, technology dictates many processes within the economy. From competing in the stock market, to creating trust funds, to even applying for credit cards, technology is an important factor that allows for economic growth and prosperity. Many business models entirely rely on internet and technology, so countries without them are restricted in their growth opportunities. Access to technology is limited, and the economies of developing countries (especially those in Africa) are being hindered by a lack of technology.
Data Methods & Models
Correlation between Adjusted Net National Income (current US$) and ICT Goods Imports
Correlation between Total Unemployment and ICT Goods Imports
A majority of Sub-Saharan African countries (85% show an increase of secure Internet servers, 97% show an increase of individuals using the Internet) are starting to increase the availability of technology within their country.
Countries with increased Information Communication Technology (ICT) goods imports had a greater number of secure Internet servers and individuals using the Internet.
There is a...
1. positive correlation between ICT goods imports and human capital index.
2. positive correlation between ICT goods imports and adjusted net national income (greatest: r = 0.89, Malawi).
3. negative correlation between ICT goods imports and total unemployment (greatest: r = -0.76, Malawi).
(These three variables were our "estimators for social and economic success.")
Of the countries that increased their imports of technology-related goods, all three of them showed drastic improvements.
Our claim: Increased technological availability can facilitate economic growth and potential of countries in sub-Saharan Africa.
Limitations and Next Steps:
- Our data was restricted to 3 countries and did not all follow our hypothesized trends; unpredictability of COVID-19 affecting graphs
- Human Capital Index is relatively new, so data is limited
- Increasing ICT goods imports means that there must be a shift in the balance between imports and exports (long-term financial goal)
- Would need more government and NGO activity in sub-Saharan regions (including financial management team, fundraising, education programs)
- Continued research: observe shift of ICT goods imports vs. economic and social growth over time