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Remittances, ICT and Doing Business in Sub-Saharan Africa

Simplice Asongu (), Nicholas Biekpe () and Vanessa Tchamyou ()
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Nicholas Biekpe: University of Cape Town, Cape Town, South Africa

No 18/009, AFEA Working Papers from African Finance and Economic Association (AFEA)

Abstract: Purpose – This study examines 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 countries for the period 2000-2012. The empirical evidence is based on Generalised Method of Moments. Findings – While we 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). We also establish ICT penetration thresholds at which the unconditional effect of remittances can be changed from positive to negative, notably: (i) for the number of start-up procedures, an internet level of 9.00 penetration per 100 people is required while (ii) 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 our knowledge, this is the first study to assess linkages between ICT, remittances and doing business in Sub-Saharan Africa.

Keywords: Remittances; ICT; Doing business; Development; Africa (search for similar items in EconPapers)
JEL-codes: F24 F63 L96 O30 O55 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ict
Date: 2018-01
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Forthcoming: Journal of Economic Studies

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http://afeawpapers.org/RePEc/afe/afe-wpaper/Remitt ... -Business-in-SSA.pdf Revised version, 2018 (application/pdf)

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Working Paper: Remittances, ICT and Doing Business in Sub-Saharan Africa (2018) Downloads
Working Paper: Remittances, ICT and Doing Business in Sub-Saharan Africa (2018) Downloads
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