Foreign direct investment, information technology and economic growth dynamics in Sub-Saharan Africa

Asongu, Simplice A.; Odhiambo, Nicholas M.

doi:10.1016/j.telpol.2019.101838

Cited by 190 publications

(86 citation statements)

References 90 publications

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“…This is essentially because according to the theoretical insights pertaining to the Neoclassical Growth Model, while technological spillovers can affect productivity, they cannot affect productivity growth rate. Hence, the findings in this respect are not in line with the New Theory of Economic Growth which supports the perspective that technology spillovers affect productivity as well as productivity growth (Hassan, 2005;Asongu & Odhiambo, 2020a). It is important to note that this nexus with theoretical insights exclusively focuses on singificance and makes abstraction to the sign of significance.…”

Section: Technology Spillovers Absorptive Capacity and Theoretical Imentioning

confidence: 67%

“…The principal view surrounding endogenous growth theories is the premise that, in the long term, economic growth is mainly driven by TFP which depends fundamentally on the rate at which technology progresses. In order to adapt the theoretical framework to this study, technological progress is assimilated to information technology in the perspective of ICT in accordance with contemporary literature on the relevance of TFP in economic prosperirty (Asongu & Odhiambo, 2020a). The attendant literature in the first-two paragraphs of this section is consistent with the perspective that cross-country differences in economic prosperity and TFP are also contingent on cross-country differences in factors that drive such economic prosperity.…”

Section: Theoretical Underpinnings and Technology Accumulationmentioning

confidence: 98%

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Enhancing ICT for productivity in sub-Saharan Africa: Thresholds for complementary policies

Asongu

Acha-Anyi

2020

African Journal of Science, Technology, Innovation and Developm

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The purpose of this research is to investigate the relevance of enhancing information and communication technology (ICT) on dynamics of total factor productivity (TFP) in 25 Sub-Saharan African countries using data covering the period 1980-2014. The empirical evidence is based on the Generalised Method of Moments. The following main findings are established. First, while enhancing ICT overwhelmingly has net positive effects on productivity, the corresponding marginal effects are negative. Second, anextended analysis is performed to establish thresholds for complementary policies. These thresholds are: 100 % mobile phone penetration for TFP; between 101.214 % and 101.419 % mobile phone penetration for welfare TFP and 15 % internet penetration for welfare real TFP. It follows that approximately 100% mobile penetration and 15% internet penetration are thresholds at which ICT should be complemented with other macroeconomic policies for favorable outcomes on productivity dynamics. Other policy implications are discussed.

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Section: Technology Spillovers Absorptive Capacity and Theoretical Imentioning

confidence: 67%

Section: Theoretical Underpinnings and Technology Accumulationmentioning

confidence: 98%

Enhancing ICT for productivity in sub-Saharan Africa: Thresholds for complementary policies

Asongu

Acha-Anyi

2020

African Journal of Science, Technology, Innovation and Developm

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“…Future studies can focus on assessing how the established linkages can be complemented with other policy variables in order to engender positive outcomes on economic growth. The suggested future inquiries can be analyzed within the framework of interactive regressions as in contemporary economic development literature (Asongu and Odhiambo 2020a). Moreover, quadratic estimations can also be used to assess specific thresholds at which the engaged variables in the conditioning information set positively affect economic growth (Asongu and Odhiambo 2020b).…”

Section: Concluding Implications and Future Research Directionsmentioning

confidence: 99%

An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy

Onifade

Çevik

Erdoğan

et al. 2020

Economic Structures

135

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Following the aftermath of the Great Economic Depression of the 1930s that culminated in the birth of the Keynesian Economics School of thought, the attention of a significant number of nations has been drawn to the relevance of government involvement in stabilizing and regulating aggregates of the general economy. That development was in contrast to the prevailing classical view about the working principles of the invisible hands of demand and supply that interplay to create necessary adjustments in relation to output determination and employment (Johnson et al. 2001; Shaikh 2009; Backhouse 2015). There are two major categories of economic policies that have been widely utilized over a vast period of time for the general purpose of economic stabilization and for the achievement of some essential macroeconomic goals and objectives in specific terms. These policies are fiscal and monetary. Although the two policies are different

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“…5 The use of the word "conditional" is generic and not specific to the choice of authors. This is essentially because estimates from interacted variables are considered as "conditional effects" in the standard literature on interactive regressions (Tchamyou, Asongu and Odhiambo, 2019a;Asongu and Odhiambo, 2020b). Moreover, as discussed prior to stating the hypothesis, the hypothesis on the positive conditional effect builds on the discussed literature on the role of ICT in reducing inequality.…”

Section: Figure 1: Inequality and Female Economic Participationmentioning

confidence: 99%

Inequality and gender inclusion: Minimum ICT policy thresholds for promoting female employment in Sub-Saharan Africa

Asongu

Odhiambo

2020

Telecommunications Policy

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The study assesses how ICT modulates the effect of inequality on female economic participation in a panel of 42 countries in sub-Saharan Africa over the period 2004-2014. Three inequality indicators are used, namely: the Gini coefficient, the Atkinson index and the Palma ratio. The adopted ICT indicators are mobile phone penetration, internet penetration and fixed broadband subscriptions. Three gender economic inclusion indicators are also used for the analysis, namely: female labour force participation, female unemployment and female employment. The Generalised Method of Moments is employed as empirical strategy. The findings show that enhancing ICT beyond certain thresholds is necessary for ICT to mitigate inequality in order to enhance gender economic participation. First, for female labour force participation, a minimum threshold of 165.714 mobile phone penetration per 100 people is required for the Palma ratio. Second, minimum ICT thresholds for the reduction of female unemployment are: (i) 87.783, 107.486 and 152.500 mobile phone penetration per 100 people for respectively, the Gini coefficient, the Atkinson index and the Palma ratio; (ii) 39.618 internet penetration per 100 people for the Atkinson index and (iii) 4.500 fixed broadband subscriptions for the Palma ratio. Third, the corresponding ICT thresholds for the promotion of female employment are: (i) 120.369 and 85.533 mobile phone penetration per 100 people for respectively, the Gini coefficient and the Atkinson index and (ii) 30.005 internet penetration per 100 people for the Gini coefficient. The established thresholds make economic sense and can be feasibly implemented by policy makers in order to induce favourable effects on gender economic inclusion dynamics.

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Foreign direct investment, information technology and economic growth dynamics in Sub-Saharan Africa

Cited by 190 publications

References 90 publications

Enhancing ICT for productivity in sub-Saharan Africa: Thresholds for complementary policies

Enhancing ICT for productivity in sub-Saharan Africa: Thresholds for complementary policies

An empirical retrospect of the impacts of government expenditures on economic growth: new evidence from the Nigerian economy

Inequality and gender inclusion: Minimum ICT policy thresholds for promoting female employment in Sub-Saharan Africa

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