Remittances, ICT and doing business in Sub-Saharan Africa

Abstract

Purpose The purpose of this paper is to examine how linkages between information and communication technology (ICT) and remittances affect the doing of business. Design/methodology/approach The focus is on a panel of 49 Sub-Saharan African (SSA) countries for the period 2000–2012. The empirical evidence is based on the generalized method of moments. Findings While the authors establish some appealing results in terms of net negative effects on constraints to the doing of business (i.e. time to start a business and time to pay taxes), some positive net effects are also apparent (i.e. number of start-up procedures, time to build a warehouse and time to register a property). The authors also establish ICT penetration thresholds at which the unconditional effect of remittances can be changed from positive to negative, notably: for the number of start-up procedures, an internet level of 9.00 penetration per 100 people is required, while for the time to build a warehouse, a mobile phone penetration level of 32.33 penetration per 100 people is essential. Practical and theoretical implications are discussed. Originality/value To the best of the authors’ knowledge, this is the first study to assess linkages between ICT, remittances and doing business in SSA.

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

“…The choice of these variables is consistent with contemporary TFP literature in SSA (Asongu, 2020). In accordance with the extant ICT literature in Africa, two main ICT indicators from the World Development Indicators of the World Bank are adopted, namely: mobile phone penetration and internet penetration (Tchamyou, 2017;Efobi et al, 2018;Asongu, Biekpe & Tchamyou, 2019). Barro (2003) and Becker, Laeser and Murphy (1999); Asongu (2015a), Odhiambo (2015a, 2015b).…”

On the simultaneous openness hypothesis: FDI, trade and TFP dynamics in Sub-Saharan Africa

“…First, while remittances have been documented to positively influence output in Africa (Ssozi and Asongu 2016b;Asongu et al 2019), the effect is also contingent on the proportion of remittances allocated for consumption purposes. Hence, in scenarios where remittances are used more for consumption than for production, the expected positive effect should be taken with caution.…”

Remittances, finance and industrialisation in Africa

“…In this scenario where the credit obtained from the bank is higher than the corresponding deposits. Having discussed the growing importance of remittances, the relevance of remittances in Africa's economic development, reasons for which investors should be Third, as critically engaged in Section 2.2, the extant literature on channels for the economic consequences of remittances can be discussed in five main strands, notably: (i) remittances as a source of liquidity for entrepreneurship (Woodruff & Zentano, 2001;Massey & Parrado, 1998;Woodruff & Zenteno, 2007;Asongu et al, 2019); (ii) remittances as a boost to industrialisation through skill enhancement, technology transfer and improved market-oriented production (Tsegai, 2004;Brinkerhoff, 2006;Dzansi, 2013;Syed & Miyazako, 2013;Ssozi & Asongu, 2016a; (iii) the exchange channel which affects the manufacturing sector's performance (Rajan & Subramanian, 2005;Selaya &Thiele, 2010;Barajas et al, 2009;Dzansi, 2013); (iv) the mechanism on the demand for non-tradable goods (Lartey et al, 2008;Lartey & Mandelman, 2009;Amuedo-Dorantes, 2014) and (v) the financial development channel which has either considered the effect of financial development on industrialisation (Shahbaz & Lean, 2012;Udoh & Ogbuagu, 2012;Ewetan & Ike, 2014) or the importance of remittances in financial development (Aggarwal, Demirguc-Kunt &Peria, 2011;Kaberuka &Namubiru;Karikari, Mensah & Harvey, 2016).…”