The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest

Vitenu‐Sackey, Prince Asare

doi:10.18488/journal.62.2020.74.222.238

Cited by 6 publications

(5 citation statements)

References 8 publications

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“…It has been asserted that the nexus between FDI and poverty alleviation is not unimodal due to the fact that it manifests differently in various developing countries. It is, perhaps, highly dependent on the host country's ability to design and implement robust and actionable policies (Mold, 2004;Vitenu-Sackey, 2019;Vitenu-Sackey, 2020). These policies should not be centered solely on attracting FDI but ensure that regulations are in place and the benefits are channeled toward the poor (Ndikumana & Verick, 2008;Yushang, Bako, & Vitenu-Sackey, 2019).…”

Section: Discussionmentioning

confidence: 99%

Investigating the role of foreign capital inflows and economic freedom in poverty alleviation

Qifa

Oppong²,

Borah³

et al. 2023

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Many developing countries are still suffering considerable poverty despite the enormous amounts of international development aid channeled to them. This phenomenon raises the question of what role foreign capital plays in these countries. Our study focused on the role of foreign capital (foreign direct investment and foreign aid) and economic freedom in poverty alleviation in developing and least-developed countries using panel data from 1995 to 2018 for 71 countries. We employed several econometric techniques, such as dynamic ordinary least squares, fully modified ordinary least squares, dynamic fixed effects, and pooled mean group regression methods. Furthermore, we performed the Granger causality test, tested the impulse response function, and conducted variance decomposition analysis. In our long-run estimations, we found that while foreign direct investment could significantly alleviate poverty, it increased poverty in the short run. On the other hand, foreign aid played no significant role in poverty alleviation in either the short or the long run. Moreover, to alleviate poverty, economic growth and economic freedom are essential; our findings consistently demonstrated that they play a crucial role in poverty alleviation. We also found bidirectional causality between poverty alleviation and population growth, while a unidirectional causal linkage was found from poverty alleviation to foreign aid. We conclude that policymakers should develop a new paradigm of developmental assistance, and governments should create an enabling environment for foreign investment to support their growth plan.

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Section: Discussionmentioning

confidence: 99%

Investigating the role of foreign capital inflows and economic freedom in poverty alleviation

Qifa

Oppong²,

Borah³

et al. 2023

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“…In a study of the impact of social media on economic growth [28], the author notes that companies' and users' access to online networks can improve communication and provide a positive impact on economic growth. This effect can be explained by a reduction in transaction costs.…”

Section: Discussionmentioning

confidence: 99%

Improving the Financial Stability of IT Companies through Social Media Marketing

Sydorenko

Mitchuk

Holik

et al. 2022

Wseas Transactions on Business and Economics

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In the context of the COVID19 pandemic, many companies face the problem of declining financial stability. IT companies are unique in this aspect, because their field of activity is entirely based on digital platforms and does not require direct contact with customers. Besides, social media marketing is becoming increasingly popular. The study of the impact of social media marketing on improving the financial stability of IT companies becomes urgent under the conditions of fierce competition, when it is necessary to ensure high rates of financial stability. The aim of the study is to determine the impact of social media marketing on improving the financial stability of IT companies. The sample of the study includes the 20 largest IT outsourcing companies in Ukraine in 2020. The study was conducted using linear regression models, which were tested by the least squares method. The impact of social media marketing was introduced into the model through the use of a dummy variable. The results of the study showed that social media marketing has a positive statistically significant impact on Profitability of Cash, Profitability of Cash Outflow, Profitability of Cash Inflow, Profitability of Net Cash Flow. The obtained results can be used to assess the impact of social media marketing on cash flow indicators and financial stability of IT companies. The study opens up new areas for further research, in particular the impact of the established brand of the IT company in social media on its financial stability.

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“…Moreover, social innovation serves as the problem solver for the world's most pressing issues, such as mobile money transfer, distance education, zero-carbon housing, restorative justice, and fair trade (Vitenu-Sackey, Oppong, & Bathuure, 2021). Innovation in the banking sectors extensively promotes financial inclusion, directly and indirectly impacting growth by ensuring vulnerable persons' economic inclusion (Guoping & Vitenu-Sackey, 2021;Hongli & Vitenu-Sackey, 2019;Vitenu-Sackey, 2020). On the other hand, social innovation changes basic practices, beliefs, social power structures, and resources profoundly.…”

Section: Discussionmentioning

confidence: 99%

“…(3) However, Equation 3 posits that factor inputs used to measure an economy's efficiency level are reliant on social capital, social innovation, technological advancement, and openness of the economy. In contrast, social capital and social innovation could contribute significantly to economic growth through advancement in technology, improvement in human capital, and increase in capital stock (Ajayi, 2006;Ozekhome, 2017;Vitenu-Sackey., 2020).…”

Section: Hence;mentioning

confidence: 99%

The Role of Social Capital and Social Innovation in Economic Growth

Bathuure

2021

The Economics and Finance Letters

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The study assessed the role of social capital and social innovation in economic growth. Nonetheless, a panel of 147 countries was sampled from 2009 to 2017, and econometric panel techniques were utilized to arrive at a statistical conclusion. The techniques used in the estimation are contemporaneous correlation estimators; thus, panel corrected standard errors, panel generalized least square with correlation disturbances, and generalized linear model. Upon estimations, the study concluded that social capital and social innovation strongly play a positive role in economic growth. Therefore, in pursuit of sustainable economic growth, social capital accumulation; thus, social trust and social networking are essential. Moreover, social innovations that are internet-related positively contribute to economic growth sustainably. The study recommends that investment in digital communication technologies should be prioritized because it improves material living standards because it lowers the cost of maintaining and creating professional and personal ties, strengthening the diffusion of knowledge and ideas, and further creating productivity spill overs positively. Also, policymakers should enact policies that offer triple triumph; thus, triumph for government, society, and individuals characterised by affordability, benefits, and add value to citizens' standard of living. Contribution/Originality:The paper contributes the first logical analysis of the role of social capital and social innovation in economic growth. With a panel of 147 countries and period from 2009 to 2017, and econometric panel techniques utilized, the study concludes that social capital and social innovation strongly play a positive role in economic growth. INTRODUCTIONFrom a macroeconomic perspective, social capital is the shared good that entails a trust-based network and trust itself, thereby improving economic policies' effectiveness (Easterly & Levine, 1997). According to Uzzi (1996), trust-based networks ensure the transmission and transfer of varied, reliable, and essential information. Perhaps, information sharing is considered as the fundamental ingredient for innovation. In support of this assertion, Akçomak and Ter Weel (2009) contend that facilitating cooperation, interaction, and information sharing result in creating social capital that encourages innovation undertakings, whereas affecting economic growth positively. In most emerging and industrialized economies, innovation has been deciphered as the fuel for growth, especially in countries like the United Kingdom, Finland, Austria, Sweden, and the United States became heavily innovative between 1995 and 2006 when they aimed to become innovative economies. Innovation is referred to as introducing

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The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest

Cited by 6 publications

References 8 publications

Investigating the role of foreign capital inflows and economic freedom in poverty alleviation

Investigating the role of foreign capital inflows and economic freedom in poverty alleviation

Improving the Financial Stability of IT Companies through Social Media Marketing

The Role of Social Capital and Social Innovation in Economic Growth

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