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Inclusive growth in Sub-Saharan Africa: Exploring the interaction between ICT diffusion and financial development

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  • Ofori, Isaac K.
  • Osei, Dennis B.
  • Alagidede, Imhotep P.

Abstract

Despite the momentous rise in ICT diffusion, and financial development in sub-Saharan Africa (SSA), their plausible joint effect on inclusive growth have not been explored, leaving a lacuna in the literature. This study, therefore, examines the direct and indirect effects of ICT diffusion on inclusive growth in 42 SSA countries over the period 1980-2019. We provide evidence robust to several specifications from the dynamic system GMM to show that: (i) ICT skills, access and usage induce inclusive growth in SSA, and (ii) the effects of ICT skills, access and usage are enhanced in the presence of financial development. These findings remain the same when we focussed on financial institution access. Policy recommendations are provided in line with the region's green growth agenda and striving efforts at improving socioeconomic development.

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  • Ofori, Isaac K. & Osei, Dennis B. & Alagidede, Imhotep P., 2022. "Inclusive growth in Sub-Saharan Africa: Exploring the interaction between ICT diffusion and financial development," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 46(7).
    • Handle: RePEc:zbw:espost:249564
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    Cited by:

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    3. Suleiman O. Mamman, 2023. "Response of Inclusive Growth to Development Aid in Africa and the Role of ICT Diffusion," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(4), pages 770-788.
    4. Zaiyang Li & Hassan Swedy Lunku & Shaohua Yang & Agus Salim, 2024. "The dynamic interplay of foreign direct investment and education expenditure on Sub-Saharan Africa income inequality," International Economics and Economic Policy, Springer, vol. 21(3), pages 593-616, July.
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    6. Dr. Aysha Sami Latif & Syed Hassan Bukhari & Dr. Muhammad Mahmood Shah Khan, 2023. "Impact Of Institutional Quality, Financial Inclusion, And Information Communication Technology On Economic Growth: Evidence From Selected Asian Countries," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 1-6.
    7. Ofori, Isaac K. & Dossou, Marcel A.M. & Asongu, Simplice A. & Armah, Mark K., 2023. "Bridging Africa’s income inequality gap: How relevant is China’s outward FDI to Africa?," Economic Systems, Elsevier, vol. 47(1).
    8. Ofori, Isaac K. & Gbolonyo, Emmanuel & Ojong, Nathanael, 2022. "Towards Inclusive Green Growth in Africa: Critical energy efficiency synergies and governance thresholds," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 365, pages 1-48.
    9. Vinay Kumar Singh & Salah Abosedra & Ali Fakih & Sajal Ghosh & Kakali Kanjilal, 2023. "Economic volatility and financial deepening in Sub-Saharan Africa: evidence from panel cointegration with cross-sectional heterogeneity and endogenous structural breaks," Empirical Economics, Springer, vol. 65(5), pages 2013-2038, November.
    10. Toyo Amègnonna Marcel Dossou, 2023. "Income Inequality in Africa: Exploring the Interaction Between Urbanization and Governance Quality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 167(1), pages 421-450, June.
    11. Mwananziche, Josephat & Myovella, Godwin & Karacuka, Mehmet & Haucap, Justus & Moshi, Goodiel, 2023. "Is digitalization a booster for economic growth in Africa? Short run and long run evidence from Tanzania," Telecommunications Policy, Elsevier, vol. 47(10).
    12. Ofori, Isaac K. & Figari, Francesco, 2022. "Economic Globalisation and Inclusive Green Growth in Africa: Contingencies and Policy-Relevant Thresholds of Governance," MPRA Paper 114377, University Library of Munich, Germany.
    13. Adams, Kweku & Attah-Boakye, Rexford & Yu, Honglan & Chu, Irene & Mali, Dafydd, 2024. "African Continental Free Trade Area and Regional Trade in ICT and Digital Technologies," Journal of International Management, Elsevier, vol. 30(4).
    14. Khadijah Iddrisu & Joshua Yindenaba Abor & Kannyiri T. Banyen, 2024. "Financial development, globalisation and foreign direct investment nexus: an empirical study from Africa," SN Business & Economics, Springer, vol. 4(6), pages 1-31, June.
    15. Pham, Thi Ha An & Lin, Chia-Yang & Moslehpour, Massoud & Vo, Thi Thuy Van & Nguyen, Hai-Tuan & Nguyen, Tran Thai Ha, 2024. "What role financial development and resource-curse situation play in inclusive growth of Asian countries," Resources Policy, Elsevier, vol. 88(C).
    16. Isaac K. Ofori & Francesco Figari, 2022. "Economic Globalisation and Inclusive Green Growth in Africa: Contingencies and Policy-Relevant Thresholds of Governance," Working Papers 22/053, European Xtramile Centre of African Studies (EXCAS).
    17. Isaac K. Ofori & Francesco Figari, 2023. "Economic globalisation and inclusive green growth in Africa: Contingencies and policy‐relevant thresholds of governance," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 452-482, February.
    18. Ho, Chun-Yu & Narins, Thomas P. & Sung, Won, 2023. "Developing information and communication technology with the belt and road initiative and the digital silk road," Telecommunications Policy, Elsevier, vol. 47(10).
    19. Ahmad, Ahmad Hassan & Green, Christopher J. & Jiang, Fei & Murinde, Victor, 2023. "Mobile money, ICT, financial inclusion and growth: How different is Africa?," Economic Modelling, Elsevier, vol. 121(C).
    20. Isaac K. Ofori & Francesco Figari, 2022. "Economic Globalisation and Inclusive Green Growth in Africa: Contingencies and Policy-Relevant Thresholds of Governance," Working Papers of the African Governance and Development Institute. 22/053, African Governance and Development Institute..
    21. Honoré Tekam Oumbé & Ronald Djeunankan & Alain Mekia Ndzana, 2023. "Does information and communication technologies affect economic complexity?," SN Business & Economics, Springer, vol. 3(4), pages 1-25, April.

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    More about this item

    Keywords

    ICT Diffusion; Inequality; Financial Development; Financial Inclusion; Inclusive Growth; Poverty; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G2 - Financial Economics - - Financial Institutions and Services
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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