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DIGITALIZATION AND ECONOMIC POLICY IMPLEMENTATION IN THE WEST AFRICAN MONETARY ZONE

. )Odogwu Helen, Mr. Omeje Emmanuel Ikechukwu, Okolie, Romanus Onyeisi, Izuchukwu Ogbodo, Ilochi, Onyebuchi, Eneaniofu Daniel , Sani Musa Zakirai & Okwor, Emmanuel Ejimnkonye


Abstract

The study explores how digitalization influences macroeconomic performance in the West African Monetary Zone (WAMZ), emphasizing its effects on fiscal, monetary, and developmental outcomes. Despite the global recognition of digitalization as a transformative force in shaping economic systems, much of the existing literature has focused on advanced and emerging economies such as those in the OECD, China, and ASEAN. Consequently, this research fills a critical gap by providing empirical evidence from the WAMZ , a region with persistent infrastructural challenges, weak institutional structures, and socio-economic diversity. The study’s objective is to examine two core relationships: (i) the impact of digital infrastructure on policy effectiveness, (ii) internet penetration on fiscal policy outcomes .Using annual panel data from WAMZ member countries, the research employed robust econometric methods including descriptive statistics, panel unit root tests, the ARDL model, bounds co-integration, and the Error Correction Model (ECM) to test two corresponding hypotheses. Findings revealed a mixed pattern of digitalization effects. First, digital infrastructure development did not significantly improve policy effectiveness, indicating that physical expansion alone cannot substitute for strong institutional frameworks. Second, internet penetration had a significant positive influence on monetary policy outcomes, suggesting that increased connectivity enhances fiscal transparency, policy coordination, and overall policy effectiveness. The study concludes that digitalization is not a uniform driver of transformation across WAMZ economies. Its success depends on institutional quality, regulatory efficiency, and complementary policy reforms. Hence, WAMZ governments should strengthen institutions, expand broadband access, deepen financial inclusion, promote digital trade integration, and support mobile technology ecosystems. By integrating insights from TAM, UTAUT, Agency Theory, and Financial Intermediation Theory, the study provides a holistic macroeconomic perspective on digitalization and offers strategic policy directions for inclusive and sustainable economic development in the region.

Key Words: Digitalization, Fiscal policy, monetary policy, ARDL model, WAMZ, ECM.

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