Information and Communication Technology (ICT) Diffusion and Agricultural Sector Growth in Sub-Saharan Africa: Evidence from System GMM Estimation

Wondimeneh Desalegn Moges

doi:10.2478/ers-2026-0017

.blurhash-client-img { display: none !important; }

Information and Communication Technology (ICT) Diffusion and Agricultural Sector Growth in Sub-Saharan Africa: Evidence from System GMM Estimation

Economic and Regional Studies / Studia Ekonomiczne i Regionalne

Volume 19 (2026): Issue 2 (June 2026)

By: Wondimeneh Desalegn Moges

Open Access

|Jul 2026

Abstract

Subject and purpose of work

The study examines how Information and Communication Technology (ICT) diffusion influences agricultural value-added in 37 Sub-Saharan African countries from 2012 to 2022. It aims to identify which ICT components – internet use, broadband, mobile, and fixed telephone subscriptions – most effectively drive agricultural transformation and productivity.

Materials and methods

Using a two-step System Generalized Method of Moments (System GMM) estimator, the study addresses endogeneity, persistence, and unobserved heterogeneity in dynamic panel data. The model includes key ICT indicators and control variables such as gross fixed capital formation and natural resource rents, supported by diagnostic tests for validity and robustness.

Results

Findings show that internet use and fixed telephony positively influence agricultural value-added, while broadband and mobile subscriptions show negative effects, reflecting infrastructure and saturation challenges

Conclusions

ICT diffusion fosters agricultural transformation in SSA, contingent on digital literacy, infrastructure, and institutional readiness

References

Abate, G. T., Abay, K. A., Chamberlin, J., Kassim, Y., Spielman, D. J., & Paul Jr Tabe-Ojong, M. (2023). Digital tools and agricultural market transformation in Africa: Why are they not at scale yet, and what will it take to get there? Food Policy, 116, 102439. https://doi.org/10.1016/j.foodpol.2023.102439
Search in Google Scholar Back to article
Acemoglu, D. & Zilibotti, F. (1999). Productivity differences. NBER Working Paper No. 6879.
Search in Google Scholar Back to article
Adenubi, O., Temoso, O., & Abdulaleem, I. (2021). Has mobile phone technology aided the growth of agricultural productivity in sub-Saharan Africa? South African Journal of Economic and Management Sciences, 24(1). https://doi.org/10.4102/sajems.v24i1.3744
Search in Google Scholar Back to article
Aker, J. C., & Mbiti, I. M. (2010). Mobile Phones and Economic Development in Africa. Journal of Economic Perspectives, 24(3), 207-232. https://doi.org/10.1257/jep.24.3.207
Search in Google Scholar Back to article
Angrist & Pischke. (2009). Mostly Harmless Econometrics: An Empiricist’s Companion.
Search in Google Scholar Back to article
Arellano, M., & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. The Review of Economic Studies, 58(2), 277. https://doi.org/10.2307/2297968
Search in Google Scholar Back to article
Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29-51. https://doi.org/10.1016/0304-4076(94)01642-D
Search in Google Scholar Back to article
Asongu, S. A., & Le Roux, S. (2017). Enhancing ICT for inclusive human development in Sub-Saharan Africa. Technological Forecasting and Social Change, 118, 44-54. https://doi.org/10.1016/j.techfore.2017.01.026
Search in Google Scholar Back to article
Asongu, S., & Odhiambo, N. M. (2019). Foreign direct investment, information technology and economic growth dynamics in Sub-Saharan Africa.
Search in Google Scholar Back to article
Becker, T. E., Atinc, G., Breaugh, J. A., Carlson, K. D., Edwards, J. R., & Spector, P. E. (2016). Statistical control in correlational studies: 10 essential recommendations for organizational researchers. Journal of Organizational Behavior, 37(2), 157-167. https://doi.org/10.1002/job.2053
Search in Google Scholar Back to article
Binswanger-Mkhize, H., & McCalla, A. F. (2010). Chapter 70 The Changing Context and Prospects for Agricultural and Rural Development in Africa. In Handbook of Agricultural Economics (Vol. 4, pp. 3571-3712). Elsevier. https://doi.org/10.1016/S1574-0072(09)04070-5
Search in Google Scholar Back to article
Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115-143. https://doi.org/10.1016/S0304-4076(98)00009-8
Search in Google Scholar Back to article
Bond, S. R. (2002). Dynamic panel data models: A guide to micro data methods and practice.
Search in Google Scholar Back to article
Bresnahan, T. F., & Trajtenberg, M. (1995). General purpose technologies ‘Engines of growth’? Journal of Econometrics, 65(1), 83-108. https://doi.org/10.1016/0304-4076(94)01598-T
Search in Google Scholar Back to article
Christiaensen, L., Rutledge, Z., & Taylor, J. E. (2021). Viewpoint: The future of work in agri-food. Food Policy, 99, 101963. https://doi.org/10.1016/j.foodpol.2020.101963
Search in Google Scholar Back to article
Christine Zhen-Wei Qiang, Alexander Pitt, Seth Ayers. (2009). Contribution of Information and Communication Technologies to Growth.
Search in Google Scholar Back to article
Christine Zhen-Wei Qiang, Carlo M. Rossotto, & Kaoru Kimura. (2009). Economic Impacts of Broadband.
Search in Google Scholar Back to article
Clarke, G. R. G., & Wallsten, S. J. (2006). Has the Internet Increased Trade? Developed and Developing Country Evidence. Economic Inquiry, 44(3), 465-484. https://doi.org/10.1093/ei/cbj026
Search in Google Scholar Back to article
Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386-405.
Search in Google Scholar Back to article
Cole, S. A., & Fernando, A. N. (2021). ‘Mobile’izing Agricultural Advice Technology Adoption Diffusion and Sustainability. The Economic Journal, 131(633), 192-219. https://doi.org/10.1093/ej/ueaa084
Search in Google Scholar Back to article
David, P. A. (1985). Clio and the economics of QWERTY. American Economic Review, 75(2), 332-337.
Search in Google Scholar Back to article
de Janvry, A., Emerick, K., Sadoulet, E., & Dar, M. (2016). The Agricultural Technology Adoption Puzzle: What Can We Learn From Field Experiments?
Search in Google Scholar Back to article
Deng, X., Peng, J., & Wan, C. (2024). The Impact of Internet Use on Land Productivity: Evidence from China Land Economy Survey. Land, 13(2), 262. https://doi.org/10.3390/land13020262
Search in Google Scholar Back to article
Domguia, E. N., & Asongu, S. A. (2025a). ICT and agriculture in Sub-Saharan Africa: Effects and transmission channels. Information Development, 02666669251333759. https://doi.org/10.1177/02666669251333759
Search in Google Scholar Back to article
Domguia, E. N., & Asongu, S. A. (2025b). ICT and agriculture in Sub-Saharan Africa: Effects and transmission channels. Information Development, 02666669251333759. https://doi.org/10.1177/02666669251333759
Search in Google Scholar Back to article
Fabregas, R., Kremer, M., & Schilbach, F. (2019). Realizing the potential of digital development: The case of agricultural advice. Science, 366(6471), eaay3038. https://doi.org/10.1126/science.aay3038
Search in Google Scholar Back to article
FAO. (2022). Digital Agriculture Report: Rural Transformation for Sustainable Development. Rome: FAO.
Search in Google Scholar Back to article
Greene, W. H. (2018). Econometric Analysis (8th ed.). Pearson Education.
Search in Google Scholar Back to article
Grimes, A., Ren, C., & Stevens, P. (2012). The need for speed: Impacts of internet connectivity on firm productivity. Journal of Productivity Analysis, 37(2), 187-201. https://doi.org/10.1007/s11123-011-0237-z
Search in Google Scholar Back to article
Hansen, L. P. (1982). Large Sample Properties of Generalized Method of Moments Estimators. Econometrica, 50(4) (pp. 1029-1054).
Search in Google Scholar Back to article
Hayami, Y. & Ruttan, V. W. (1970). Agricultural productivity differences among countries. American Economic Review, 60(5) 895-911.
Search in Google Scholar Back to article
Hicks, J. R. (1932). The Theory of Wages. London: Macmillan.
Search in Google Scholar Back to article
Hsiao, C. (2014). Analysis of Panel Data (3rd ed.). Cambridge University Press.
Search in Google Scholar Back to article
Hult, G. T. M., Hair, J. F., Proksch, D., Sarstedt, M., Pinkwart, A., & Ringle, C. M. (2018). Addressing Endogeneity in International Marketing Applications of Partial Least Squares Structural Equation Modeling. Journal of International Marketing, 26(3), 1-21. https://doi.org/10.1509/jim.17.0151
Search in Google Scholar Back to article
Jack, W., & Suri, T. (2011). Mobile Money: The Economics of M-PESA (No. w16721; p. w16721). National Bureau of Economic Research. https://doi.org/10.3386/w16721
Search in Google Scholar Back to article
Jeffrey M. Wooldridge. (2010). Econometric Analysis of Cross Section and Panel Data. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/http://213.55.90.4/admin/home/Dmu%20Academic%20Resource/Postgraduate%20Studies/Accounting%20and%20finance/WOOLDRIDGE%20ECONOMETRIC%20ANALYSIS.PDF
Search in Google Scholar Back to article
Joseph E. Stiglitz & Andrew Weiss. (1981). Credit Rationing in Markets with Imperfect Information.
Search in Google Scholar Back to article
Kouam, J. C., & Asongu, S. (2023a). The non-linear effects of fixed broadband on economic growth in Africa. Journal of Economic Studies, 50(5), 881-895. https://doi.org/10.1108/JES-03-2022-0159
Search in Google Scholar Back to article
Kouam, J. C., & Asongu, S. (2023b). The non-linear effects of fixed broadband on economic growth in Africa. Journal of Economic Studies, 50(5), 881-895. https://doi.org/10.1108/JES-03-2022-0159
Search in Google Scholar Back to article
Li, X., Xiong, H., Hao, J., & Li, G. (2024). Impacts of internet access and use on grain productivity: Evidence from Central China. Humanities and Social Sciences Communications, 11(1), 90. https://doi.org/10.1057/s41599-023-02546-5
Search in Google Scholar Back to article
LoPiccalo, K. (2022). Impact of broadband penetration on U.S. Farm productivity: A panel approach. Telecommunications Policy, 46(9), 102396. https://doi.org/10.1016/j.telpol.2022.102396
Search in Google Scholar Back to article
Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3-42. https://doi.org/10.1016/0304-3932(88)90168-7
Search in Google Scholar Back to article
Memon, M. A. (2024). Control Variables: A Review and Proposed Guidelines. Journal of Applied Structural Equation Modeling, 8(2), 1-14. https://doi.org/10.47263/JASEM.8(2)01
Search in Google Scholar Back to article
Mwikamba, J. N., Otieno, D. J., & Oluoch-Kosura, W. (2024). Effect of using a mobile phone on technical efficiency and productivity of climate-smart horticulture farmers in Taita-Taveta county, Kenya. Heliyon, 10(17), e36917. https://doi.org/10.1016/j.heliyon.2024.e36917
Search in Google Scholar Back to article
Nickell, S. J. (1981). Biases in Dynamic Models with Fixed Effects. Econometrica, 49(6), 1417-1426.
Search in Google Scholar Back to article
OECD. (2019). Broadband Policies for Latin America and the Caribbean: A Digital Economy Toolkit. OECD Publishing, Paris.
Search in Google Scholar Back to article
Oliver E. Williamson. (1985). The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting.
Search in Google Scholar Back to article
Onyeneke, R. U., Ankrah, D. A., Atta-Ankomah, R., Agyarko, F. F., Onyeneke, C. J., & Nejad, J. G. (2023a). Information and Communication Technologies and Agricultural Production: New Evidence from Africa. Applied Sciences, 13(6), 3918. https://doi.org/10.3390/app13063918
Search in Google Scholar Back to article
Onyeneke, R. U., Ankrah, D. A., Atta-Ankomah, R., Agyarko, F. F., Onyeneke, C. J., & Nejad, J. G. (2023b). Information and Communication Technologies and Agricultural Production: New Evidence from Africa. Applied Sciences, 13(6), 3918. https://doi.org/10.3390/app13063918
Search in Google Scholar Back to article
Oyelami, L. O., Sofoluwe, N. A., & Ajeigbe, O. M. (2022a). ICT and agricultural sector performance: Empirical evidence from sub-Saharan Africa. Future Business Journal, 8(1), 18. https://doi.org/10.1186/s43093-022-00130-y
Search in Google Scholar Back to article
Oyelami, L. O., Sofoluwe, N. A., & Ajeigbe, O. M. (2022b). ICT and agricultural sector performance: Empirical evidence from sub-Saharan Africa. Future Business Journal, 8(1), 18. https://doi.org/10.1186/s43093-022-00130-y
Search in Google Scholar Back to article
Qu, X., Lu, Q., Li, M., & Zhang, W. (2025a). Broadband Internet Speed Upgrades and the Farmland Market: A Shift‐Share Instrumental Variable Approach. American Journal of Agricultural Economics, ajae.12559. https://doi.org/10.1111/ajae.12559
Search in Google Scholar Back to article
Qu, X., Lu, Q., Li, M., & Zhang, W. (2025b). Broadband Internet Speed Upgrades and the Farmland Market: A Shift‐Share Instrumental Variable Approach. American Journal of Agricultural Economics, ajae.12559. https://doi.org/10.1111/ajae.12559
Search in Google Scholar Back to article
Quandt, A., Salerno, J. D., Neff, J. C., Baird, T. D., Herrick, J. E., McCabe, J. T., Xu, E., & Hartter, J. (2020). Mobile phone use is associated with higher smallholder agricultural productivity in Tanzania, East Africa. PLOS ONE, 15(8), e0237337. https://doi.org/10.1371/journal.pone.0237337
Search in Google Scholar Back to article
Rajkhowa, P., & Baumüller, H. (2024). Assessing the potential of ICT to increase land and labour productivity in agriculture: Global and regional perspectives. Journal of Agricultural Economics, 75(2), 477-503. https://doi.org/10.1111/1477-9552.12566
Search in Google Scholar Back to article
Richard G.Lipsey, Kenneth I.Carlaw, & Clifford T.Bekar. (2005). Economic Transformations General Purpose Technologies and Long-Term Economic Growth.
Search in Google Scholar Back to article
Romer, P. M. (1990). Endogenous Technological Change. Journal of Political Economy, 98(5, Part 2), S71-S102. https://doi.org/10.1086/261725
Search in Google Scholar Back to article
Roodman, D. (2009). A Note on the Theme of Too Many Instruments*. Oxford Bulletin of Economics and Statistics, 71(1), 135-158. https://doi.org/10.1111/j.1468-0084.2008.00542.x
Search in Google Scholar Back to article
Sanders, C. E., Gibson, K. E., & Lamm, A. J. (2022). Rural Broadband and Precision Agriculture: A Frame Analysis of United States Federal Policy Outreach under the Biden Administration. Sustainability, 14(1), 460. https://doi.org/10.3390/su14010460
Search in Google Scholar Back to article
Schumpeter, J. A. (1942). Capitalism, Socialism and Democracy. Harper & Brothers.
Search in Google Scholar Back to article
Suroso, A. I., Fahmi, I., & Tandra, H. (2022). The Role of Internet on Agricultural Sector Performance in Global World. Sustainability, 14(19), 12266. https://doi.org/10.3390/su141912266
Search in Google Scholar Back to article
Toubia, O., Hauser, J. R., & Simester, D. I. (2004). Polyhedral Methods for Adaptive Choice-Based Conjoint Analysis. Journal of Marketing Research, 41(1), 116-131. https://doi.org/10.1509/jmkr.41.1.116.25082
Search in Google Scholar Back to article
World Bank. (2023a). The Size and Distribution of Digital Connectivity Gaps in Sub-Saharan Africa. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://documents1.worldbank.org/curated/en/099241003142325200/pdf/IDU0cb2e42f3050260484d0b8370b84eee303ecf.pdf
Search in Google Scholar Back to article
World Bank. (2023b). World Development Indicators 2023. Washington, DC: World Bank. https://databank.worldbank.org/source/world-development-indicators
Search in Google Scholar Back to article
Zaefarian, G., Kadile, V., Henneberg, S. C., & Leischnig, A. (2017). Endogeneity bias in marketing research: Problem, causes and remedies. Industrial Marketing Management, 65, 39-46. https://doi.org/10.1016/j.indmarman.2017.05.006
Search in Google Scholar Back to article
Zant, W. (2024). Mobile phones and Mozambique farmers: Less asymmetric information and more trader competition? World Development, 180, 106574. https://doi.org/10.1016/j.worlddev.2024.106574
Search in Google Scholar Back to article

Articles in this issue

DOI: https://doi.org/10.2478/ers-2026-0017 | Journal eISSN: 2451-182X | Journal ISSN: 2083-3725

Journal RSS Feed

Language: English

Page range: 290 - 316

Submitted on: Nov 1, 2025

Accepted on: Jan 1, 2026

Published on: Jul 31, 2026

Published by: John Paul II University in Biała Podlaska

In partnership with: Paradigm Publishing Services

Keywords:

information and communication technology,

agricultural value added,

system GMM,

Sub-Saharan Africa,

digital transformation

Related subjects:

Business and economics,

Political economics,

Political economics, other,

Business and economics,

Business management,

Business management, other,

Local government and administration

© 2026 Wondimeneh Desalegn Moges, published by John Paul II University in Biała Podlaska
This work is licensed under the Creative Commons Attribution 4.0 License.

Volume 19 (2026): Issue 2 (June 2026)