ICT, governance and inequality in Africa

Causal Link between Technological Innovation and Inequality Moderated by Public Spending, Manufacturing, Agricultural Employment, and Export Diversification

“…Likewise, social programs contribute to raising living standards. The result of the innovation is contradictory to research such as that of Ojha et al [25], Drummond-Lage et al [29], and Adams and Akobeng [32], who contended that this variable reduces inequality by applying technology in various fields of the economy. However, it agrees with Butler and Dueker [22] and Gravina and Lanzafame [3], who argued that automation in production systems increases inequality due to the unemployment of unskilled workers.…”

“…Innovation increases inequality due to the reduction of workers who are replaced by automatic processes [31]. In an analysis of 46 African countries, the findings indicate that innovation through ICT reduces inequality [32]. It was established in 90 economies from 1970 to 2015 that innovation increased inequality for emerging economies and produced a mixed effect in advanced economies [3].…”

Effects of ICTs on the Terms of Trade of Sub-Saharan African Economies

“…SSA remains highly dependent on exports of primary commodities and natural resources. The region has a very low share in global manufacturing exports (Adams & Akobeng, 2021). However, there is increasing adoption of ICT by SSA economies, although this is low compared to other regions of the world.…”

“…However, there is increasing adoption of ICT by SSA economies, although this is low compared to other regions of the world. Moreover, the number of internet users is positively correlated with the terms of trade in SSA (Adams & Akobeng, 2021). Taking the four SSA economic regions separately-namely the Economic Community of West African States (ECOWAS), the Economic Community of Central African States (ECCAS), the Southern African Development Community (SADC), and the East African Community (EAC)-we observe the evolution of the terms-oftrade index and the evolution of the number of internet users as a percentage of the population.…”

Bridging Africa’s Income Inequality Gap: How Relevant Is China’s Outward FDI to Africa?

“…Focussing on all disaggregated components of governance quality-control of corruption, political stability, rule of law, governance effectiveness, regulatory quality, and voice and accountability across, Nguyen (2021) find that these governance dynamics contribute to the equalisation of incomes across developing and developed countries though the effects are pronounced in the case of the latter compared to the former. In a similar study by Adams and Akobeng (2021) in the context of Africa, the authors interrogate whether the governance measures of democratic rule, regulatory quality, rule of law and political stability form relevant synergies with digital infrastructure towards the equalisation of incomes in Africa. The authors provide strong empirical evidence from the dynamic system GMM estimator to affirm this hypothesis, with the effects of political stability and rule of law being the most remarkable.…”