FOREIGN DIRECT INVESTMENT, INFORMATION TECHNOLOGY, AND TOTAL FACTOR PRODUCTIVITY DYNAMICS IN SUB-SAHARAN AFRICA

The potential for information technology penetration in sub-Saharan Africa (SSA) is very high compared to other regions. Unfortunately, productivity levels the area are also deficient. This study investigates importance of influencing effect foreign direct investment (FDI) on total factor (TFP) dynamics. focus 25 countries SSA. Information measured with mobile phone and internet penetration, while engaged TFP dynamics TFP, real welfare TFP. empirical evidence based Generalized Method Moments. findings show that except regressions about growth which estimations do not pass post-estimation diagnostic tests, it apparent modulates FDI positively influence (i.e., TFP). Policy theoretical implications discussed.