Internet Penetration and Human Capital Development in Africa

Abstract

This study investigates the effect of internet penetration on human capital development in 48 African countries between the periods of 1980 to 2019. The two-step system GMM strategy is adopted to address the potential endogeneity. The findings show that the level of human capital development is ameliorated by growth in information and communication technologies specifically by internet penetration. Internet penetration is measured by individuals using internet and the subscription rate of fixed broadband. These findings remain consistent in both the low- and the middle-income African countries, irrespective of their technology infrastructure levels. From the findings of our study, we suggest that much investment should be made in both the communication and technology infrastructures and in the educational and the health sectors so as to enhance the level of human capital development. Investments in human capital are encouraged by channeling more funds to the educational and health departments to boost the continent’s productivity.