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Exploring the interactive effects of remittances, financial development and ICT in Sub-Saharan Africa: an ARDL bounds approach

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  • Ronald Ravinesh Kumar

Abstract

In this paper, using the ARDL bounds approach and augmented Solow framework, we explore the impacts of capital inflows (remittances, foreign direct investment and overseas development assistance) and financial-technology inclusion viz. remittance on per worker income in Sub-Saharan Africa (SSA) for the periods 1970-2010. The results show that growth in the region is lead by capital productivity. Although information and communications technology (ICT) per se has a negative effect on income, when ICT is associated with financial development and remittances, the effects are positive in both short run and long run. Thus, there is a need for greater financial and technology inclusion - linking remittance industry with financial and ICT services. Overseas development assistance (ODA) shows a negative elasticity while FDI and remittances per se is negative and not statistically significant. SSA's predominantly ruralised economic structure further calls for greater accessibility, affordability and inclusivity of financial and ICT services linked to remittances market, development of critical, infrastructures, key sector reforms, and well managed and assessed ODA and FDI inflows for sustainable pro-growth development.

Suggested Citation

  • Ronald Ravinesh Kumar, 2012. "Exploring the interactive effects of remittances, financial development and ICT in Sub-Saharan Africa: an ARDL bounds approach," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 1(3), pages 214-242.
    • Handle: RePEc:ids:ajesde:v:1:y:2012:i:3:p:214-242
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    Citations

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    Cited by:

    1. D. O. Olayungbo & Ahmod Quadri, 2019. "Remittances, financial development and economic growth in sub-Saharan African countries: evidence from a PMG-ARDL approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 5(1), pages 1-25, December.
    2. Karmaker, Shamal Chandra & Barai, Munim Kumar & Sen, Kanchan Kumar & Saha, Bidyut Baran, 2023. "Effects of remittances on renewable energy consumption: Evidence from instrumental variable estimation with panel data," Utilities Policy, Elsevier, vol. 83(C).
    3. Debelo Bedada Yadeta & Fetene Bogale Hunegnaw, 2022. "Effect of International Remittance on Economic Growth: Empirical Evidence from Ethiopia," Journal of International Migration and Integration, Springer, vol. 23(2), pages 383-402, June.
    4. Kumar, Ronald Ravinesh & Kumar, Radika Devi & Patel, Arvind, 2015. "Accounting for telecommunications contribution to economic growth: A study of Small Pacific Island States," Telecommunications Policy, Elsevier, vol. 39(3), pages 284-295.
    5. Keshmeer Makun & Tiru K. Jayaraman, 2021. "COVID- 19 impact on remittances and economic growth in three transitional countries in ASEAN: evidence from nonlinear analysis," Economics Bulletin, AccessEcon, vol. 41(3), pages 1566-1578.
    6. Ronald Kumar, 2014. "Exploring the role of technology, tourism and financial development: an empirical study of Vietnam," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(5), pages 2881-2898, September.
    7. Kumar, Ronald Ravinesh & Stauvermann, Peter Josef & Loganathan, Nanthakumar & Kumar, Radika Devi, 2015. "Exploring the role of energy, trade and financial development in explaining economic growth in South Africa: A revisit," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1300-1311.
    8. Ronald Kumar & Madhukar Singh, 2014. "Role of health expenditure and ICT in a small island economy: a study of Fiji," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2295-2311, July.
    9. Ronald Kumar, 2014. "Exploring the nexus between tourism, remittances and growth in Kenya," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1573-1588, May.
    10. Farroukh, Arafet & Mazioued, Manel & Pédussel Wu, Jennifer, 2024. "Revisiting the linkage between remittances inflow and economic growth: A semi-parametric estimation with panel data," IPE Working Papers 238/2024, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    11. Ronald Ravinesh Kumar & Peter Josef Stauvermann & Nikeel Kumar & Syed Jawad Hussain Shahzad, 2019. "Exploring the effect of ICT and tourism on economic growth: a study of Israel," Economic Change and Restructuring, Springer, vol. 52(3), pages 221-254, August.
    12. Ronald Ravinesh Kumar & Peter Josef Stauvermann & Syed Jawad Hussain Shahzad, 2017. "Can technology provide a glimmer of hope for economic growth in the midst of chaos? A case of Zimbabwe," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(2), pages 919-939, March.
    13. Raéf Bahrini & Alaa A. Qaffas, 2019. "Impact of Information and Communication Technology on Economic Growth: Evidence from Developing Countries," Economies, MDPI, vol. 7(1), pages 1-13, March.

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