ABSTRACT
Robust economic growth in Africa since the mid-1990s has coincided with a rapid diffusion of information and communication technologies (ICTs), indicating that the two processes might be interrelated. The chapter examines this nexus by employing a combination of parametric and nonparametric methods that provide detailed insights into the nonlinearities involved. The parametric results reveal the presence of growth and employment enhancing effects of ICTs. Further, nonparametric results confirm presence of network externalities that cause fixed-line and mobile cellular telephones to foster productivity growth above a penetration threshold of around 15% if complemented by higher levels of physical capital accumulation.
