Does Import of Information and Communications Technology (ICT) Goods Foster Sustainable Economic Development in Sub-Saharan Africa? The Role of Governance Quality

Abstract

This paper examines the relationship between sustainable economic development and the import of information and communications technology (ICT) goods (MICTG) across 32 Sub-Saharan African (SSA) countries between 2000 and 2020, contributing to the broader discourse on achieving Sustainable Development Goals within the region. Utilizing a computed Sustainable Economic Development Index (SEDI), we assess the role of governance quality, categorized into political, institutional, and economic dimensions, in moderating the impact of ICT goods imports on sustainable economic development outcomes. Fixed-effects and instrumental variables two-stage least squares estimation results reveal that MICTG exerts a significantly negative influence on sustainable economic development, while governance quality across all dimensions positively influences SEDI. Our findings highlight the pivotal role of institutions in mitigating the adverse effects of ICT imports, although improvements in governance frameworks may not yield immediate positive development outcomes. Policy implications suggest the urgent need for SSA countries to strengthen institutional governance to create an environment where ICT imports can foster sustainable growth.