Affiliation:
1. Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria
Abstract
This study examines the role of digital economy and institutional quality on economic
growth of Bangladesh, Ethiopia, Kenya, and Nigeria. The study adopts the feasible
generalized least square method with annual panel data from 1985 to 2017. Results
show that digital economy, human capital and knowledge worker, and democratic
accountability promote economic growth, while corruption, socioeconomic conditions, and bureaucratic quality retard economic growth. Furthermore, interaction
of digital economy with corruption promotes growth. However, the interaction of
digital economy with institutional quality retards economic growth, which could be
due to the deteriorating institutional quality and low level of economic digitalization in these countries. The study concludes that digital economy and institutional
quality could play positive roles in the quest to becoming emerging markets. The
study suggests more involvement of the countries in digital economy and improved
institutional quality.