The impact of digitalization, education, and institutional quality on economic growth: A comparative analysis between Sub-Saharan Africa and Middle East Countries

Digitalization, education, and institutional quality emerge as key drivers with the potential to unlock global economic growth. This study analyses their impact on economic growth by comparing Sub-Saharan Africa (SSA) and Middle East (ME) economies. Using an annual panel dataset from 2005 to 2021 fo...

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Main Authors: Ebou Correa, Miguel Angel Esquivias
Format: Article
Language:English
Published: Elsevier 2025-01-01
Series:Social Sciences and Humanities Open
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2590291125001500
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author Ebou Correa
Miguel Angel Esquivias
author_facet Ebou Correa
Miguel Angel Esquivias
author_sort Ebou Correa
collection DOAJ
description Digitalization, education, and institutional quality emerge as key drivers with the potential to unlock global economic growth. This study analyses their impact on economic growth by comparing Sub-Saharan Africa (SSA) and Middle East (ME) economies. Using an annual panel dataset from 2005 to 2021 for 14 SSA and 9 ME countries and the Pooled Mean Group (PMG) model, the study finds that digitalization, education, and institutional quality positively influence economic growth in both regions. However, institutional quality has an insignificant influence on ME. Digitalization and education are more advanced in the ME, whereas institutional quality is more robust in SSA. The interaction between digitalization and education has a weaker impact, while the interaction between digitalization and institutional quality positively influences economic growth in both regions. Gross domestic savings significantly and positively impact SSA but negatively and insignificantly affect the ME. Labor positively influences both regions but is insignificant for SSA, with a higher impact in the ME. Policymakers should invest in digital infrastructure and education to enhance economic growth, human capital (HC), competitiveness, and productivity and promote sustainable growth through the rule of law.
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spelling doaj-art-9da80b0b0d2d4589a22dbbade73951072025-08-20T03:22:59ZengElsevierSocial Sciences and Humanities Open2590-29112025-01-011110142310.1016/j.ssaho.2025.101423The impact of digitalization, education, and institutional quality on economic growth: A comparative analysis between Sub-Saharan Africa and Middle East CountriesEbou Correa0Miguel Angel Esquivias1Department of Economics, Faculty of Economics and Business, Airlangga University, Surabaya, 60268, IndonesiaDepartment of Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, 60268, Indonesia; Corresponding author.Digitalization, education, and institutional quality emerge as key drivers with the potential to unlock global economic growth. This study analyses their impact on economic growth by comparing Sub-Saharan Africa (SSA) and Middle East (ME) economies. Using an annual panel dataset from 2005 to 2021 for 14 SSA and 9 ME countries and the Pooled Mean Group (PMG) model, the study finds that digitalization, education, and institutional quality positively influence economic growth in both regions. However, institutional quality has an insignificant influence on ME. Digitalization and education are more advanced in the ME, whereas institutional quality is more robust in SSA. The interaction between digitalization and education has a weaker impact, while the interaction between digitalization and institutional quality positively influences economic growth in both regions. Gross domestic savings significantly and positively impact SSA but negatively and insignificantly affect the ME. Labor positively influences both regions but is insignificant for SSA, with a higher impact in the ME. Policymakers should invest in digital infrastructure and education to enhance economic growth, human capital (HC), competitiveness, and productivity and promote sustainable growth through the rule of law.http://www.sciencedirect.com/science/article/pii/S2590291125001500Economic growthDigitalizationEducation qualityInstitutional qualityLeaning opportunities
spellingShingle Ebou Correa
Miguel Angel Esquivias
The impact of digitalization, education, and institutional quality on economic growth: A comparative analysis between Sub-Saharan Africa and Middle East Countries
Social Sciences and Humanities Open
Economic growth
Digitalization
Education quality
Institutional quality
Leaning opportunities
title The impact of digitalization, education, and institutional quality on economic growth: A comparative analysis between Sub-Saharan Africa and Middle East Countries
title_full The impact of digitalization, education, and institutional quality on economic growth: A comparative analysis between Sub-Saharan Africa and Middle East Countries
title_fullStr The impact of digitalization, education, and institutional quality on economic growth: A comparative analysis between Sub-Saharan Africa and Middle East Countries
title_full_unstemmed The impact of digitalization, education, and institutional quality on economic growth: A comparative analysis between Sub-Saharan Africa and Middle East Countries
title_short The impact of digitalization, education, and institutional quality on economic growth: A comparative analysis between Sub-Saharan Africa and Middle East Countries
title_sort impact of digitalization education and institutional quality on economic growth a comparative analysis between sub saharan africa and middle east countries
topic Economic growth
Digitalization
Education quality
Institutional quality
Leaning opportunities
url http://www.sciencedirect.com/science/article/pii/S2590291125001500
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