ICT diffusion and the finance–growth nexus: a panel analysis on ECOWAS countries

Alimi, Ahmed S.; Adediran, Idris A.

doi:10.1186/s43093-020-00024-x

Cited by 24 publications

(18 citation statements)

References 51 publications

(93 reference statements)

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“…This result is in contrast with studies such as Sujarwoto and Tampubolon (2016) and Haider (2017) that argue that ICTs have no impact on poverty reduction. However, our | 21 results are inconsistent with the studies that strengthen the key idea vis-à-vis the positive effect of ICT diffusion on poverty alleviation in developing countries (Alimi & Adediran, 2020).…”

Section: Resultscontrasting

confidence: 99%

“…Therefore, to lessen inequality and break the cycle of poverty, appropriate matching between growth dynamics and redistribution policies is required (Fuente, 2016). The evidence concerning this distributional effect is inconclusive (Alimi & Adediran, 2020; Das & Chatterjee, 2021; Mushtaq & Bruneau, 2019; Oshota, 2019; Yilmaz et al, 2018). One school of thought suggests that ICT aggravates inequality because of the skill‐bias impact on the labor market (Akerman et al, 2015; Atasoy, 2012; Forman et al, 2012).…”

Section: Linking Ict Diffusion With Poverty Reductionmentioning

confidence: 99%

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Does ICT diffusion reduce poverty? Evidence from SAARC countries

Verma

Giri

Debata

2023

Poverty & Public Policy

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The present study aims to explore the relationship between ICT diffusion and poverty reduction in SAARC countries using panel data from 2005 to 2020. This study uses econometric techniques robust to cross-sectional dependence (CSD) including Pesaran's CSD tests; secondgeneration unit root test; Pedroni, Kao, Westerlund cointegration tests; CS-ARDL, Driscoll-Kraay (DK) standard error approach; and D&H causality test. The investigation is based on the ICT diffusion index constructed using principal component analysis (PCA). The study's major finding shows that ICT diffusion reduces poverty both in the long and short run, indicating the favorable impact of ICT on the development process in SAARC countries. Further, economic growth, financial development, and remittances all serve to minimize the poverty level. The causality test reveals bidirectional causation between ICT diffusion and poverty reduction. The study highlights the crucial role of ICT diffusion and selected economic variables in reducing poverty. The findings of the present research shall benefit policymakers to formulate appropriate policies and programs to improve the well-being of people and enhance macroeconomic performance, which impacts both the societal and environmental development of a country.

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Section: Resultscontrasting

confidence: 99%

Section: Linking Ict Diffusion With Poverty Reductionmentioning

confidence: 99%

Does ICT diffusion reduce poverty? Evidence from SAARC countries

Verma

Giri

Debata

2023

Poverty & Public Policy

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“…In the existing literature, there are numerous studies with mixed results on the relationship between financial development and economic growth (Adeniyi, Oyinlola, Omisakin and Egwaikhide, 2015;Samargandi, Fidrmuc, and Ghosh, 2015;Kenza & Eddine, 2016;Muazu and Ibrahim, 2018;Botev and Jawadi, 2019;Alimi and Adediran, 2020;Wu et al 2020;and Redmond and Nasir, 2020). The present study contends that the divergent findings recorded could be because the authors did not account for globalization in their regressions.…”

Section: Introductioncontrasting

confidence: 54%

Trivariate Modelling of the Nexus Between Financial Development, Globalization and Economic Growth: Insight from African Countries

Ahmed

2021

IJFR

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Financial development has been identified as main drivers of economic growth. However, empirical probe of this nexus remains inconclusiveness due use of an inappropriate proxy by previous studies, and the inability of previous studies to consider globalization in this nexus. To this end, we probe the finance-growth nexus in the presence of globalization by applying the Pooled Mean Group (PMG) estimator to a sample of 21 countries spanning 1990–2017. The empirical results affirm the supply-leading hypothesis which indicates that financial development spur economic growth. In addition, our estimate provides evidence of a positive linear relationship between globalization and economic growth. Further, results indicate that physical capital investment plays an important role in accelerating economic performance of African economies. Based on these findings, it is important for African countries to promote globalization-financial development policies in order to have access to alternative sources of external financing and attract foreign investment that can spur growth of African countries.

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“…Other studies such as Zhang and Danish ( 2019 ) and Stute et al ( 2020 ) noted the use of ICT in the environmental and disaster management sector, while Alkhowaiter ( 2020 ), Del Guadio et al (2020) and Yin et al ( 2020 ) expressed the use of ICT in the banking sector. In another strand of studies (Alimi and Adediran 2020 ; Arvin et al 2021 ; Pradhan et al 2021 ; among others), ICT is linked to economic growth. Meanwhile, Africa remained the continent with the least adaptation to the use of ICT with about 8% of the population using the internet between 2000 and 2018 (World Development Indicator data, WDI 2020 ).…”

Section: Introductionmentioning

confidence: 99%

Information and Communication Technology (ICT) and youth unemployment in Africa

et al. 2022

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Africa is lagging in infrastructural development including Information and Communication Technology (ICT). As there are rising employment opportunities in the ICT-intensive industries globally including Africa, enhanced knowledge and use of ICT may tend to reduce youth unemployment in Africa. Thus, this study investigates the effect of ICT on youth unemployment in Africa using a sample of 41 African countries between 2003 and 2018. The study employs a dynamic Generalized Method of Moment (GMM) approach and constructs a composite ICT index to combine key indicators of ICT, using the principal component approach. We also account for the interactive role of education in the ICT-youth unemployment nexus. Relying on the Phillip curve theoretical model, the effect of inflation, physical capital accumulation, level of corruption, and economic growth are also examined. The results show that youth unemployment in Africa can be reduced by higher ICT deployment and usage, which confirms our hypothesis in this study. There is also evidence that education enhances the potential of ICT usage to reduce youth unemployment. Furthermore, we find that the Phillip curve hypothesis holds, as the inflation rate has a negative effect on youth unemployment. More so, there is evidence that youth unemployment in Africa can be reduced by higher physical capital accumulation, lower level of corruption, and higher economic growth. With falling economic growth and looming economic recession in many African countries, governments would need to revise educational curricula to include ICT-based training to reduce the level of youth unemployment in the medium to long term period.

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ICT diffusion and the finance–growth nexus: a panel analysis on ECOWAS countries

Cited by 24 publications

References 51 publications

Does ICT diffusion reduce poverty? Evidence from SAARC countries

Does ICT diffusion reduce poverty? Evidence from SAARC countries

Trivariate Modelling of the Nexus Between Financial Development, Globalization and Economic Growth: Insight from African Countries

Information and Communication Technology (ICT) and youth unemployment in Africa

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