Assessing the nexus among Digitalisation, Security Spending and Economic Growth in Africa
Osman Babamu Halidu
Kumasi Technical University
Benjamin Yeboah
Kumasi Technical University
Abdul Aziz Iddrisu
Kumasi Technical University
George Ohene Djan
Kumasi Technical University
Adamu Ibrahim
Kumasi Technical University
Keywords: Economic growth, Digitalisation, Security spending, Method of moments quantile Regression, Africa
Abstract
The African continent has experienced notable technological progress in digitalization. Simultaneously, security spending has risen within national budgets of several African countries. As these nations modernize their border security, it is crucial to explore the relationship between digitalization and security expenditure and their effect on economic growth. This study investigates the connection between digitalization, security spending, and economic growth in Africa, a relationship not extensively examined in existing literature. Previous studies have mostly examined this relationship in isolation or through average-based models, neglecting its non-linear and asymmetric nature. This research fills this gap by exploring data from 2000 to 2021 and using the method of moments quantile technique, which resists outliers and captures different effects across various levels of economic growth. The results show that the joint impact of digitalization and security spending is consistently positive at all levels of economic growth, with strongest effects in higher-growth economies. This underscores the need for coordinated policies incorporating digitalization into national security strategies, ensuring investments support each other to promote economic development. The findings offer valuable insights into economic development, security, and digital transformation in Africa.
Author Biographies
Osman Babamu Halidu, Kumasi Technical University
Business School
Benjamin Yeboah, Kumasi Technical University
Business School
Abdul Aziz Iddrisu, Kumasi Technical University
Business School
George Ohene Djan, Kumasi Technical University
Business School
Adamu Ibrahim, Kumasi Technical University
Business School