Digital Transformation and Labour Productivity in SADC: Long-Run Effects and The Limits of Human-Capital Complementarity
Suares Clovis Oukouomi Noutchie ORCID ↗ · Emile Franc Doungmo Goufo
International Journal of Business Ecosystem & Strategy · 2026 · Vol. 8 / Issue 5 · 531-543
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Abstract
This study examines whether digital transformation is associated with higher labour productivity in the Southern African Development Community (SADC) and whether the relationship strengthens with human capital. A fully open panel is constructed from World Development Indicators and Penn World Table 11.0 for 13 SADC economies over 2005-2023. Digitalisation is measured by the first principal component of internet use, mobile subscriptions and fixed broadband. The empirical strategy combines country fixed effects with Driscoll-Kraay covariance and a pooled dynamic common correlated effects error-correction model. Country-cluster bootstrap inference, an equal-weight digital index, sequential country deletion and threshold estimation provide robustness checks. The long-run digital coefficient is positive (0.239; 95% bootstrap interval [0.033, 0.425]), while the error-correction coefficient indicates stable annual adjustment (-0.566; interval [-0.820, -0.208]). The digitalisation-human-capital interaction is not supported (-0.041; interval [-0.102, 0.015]), and the threshold slope difference also includes zero. H2 is rejected for the aggregate PWT human-capital index, not for skills in general. The findings identify a durable average digital productivity premium without evidence that national education stocks automatically magnify it. Policy should combine reliable connectivity with targeted, use-specific capabilities and business-ecosystem coordination.
Keywords: {'name': 'digital transformation'}, {'name': 'labour productivity'}, {'name': 'human capital'}, {'name': 'SADC;'}, {'name': 'common correlated effects'}, {'name': 'open data'}
Authors & affiliations
Suares Clovis Oukouomi Noutchie
North-West University
Emile Franc Doungmo Goufo
University of South Africa
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