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ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa

Isaac Kwesi Ofori () and Simplice Asongu ()

No 21/029, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: This study examines the joint effects of ICT diffusion (composed of access, usage and skills), and foreign direct investment (FDI) on inclusive growth in sub-Saharan Africa (SSA). The study draws on data from the World Bank’s World Development Indicators, and the Global Consumption and Income Project for the period 1980–2019 for the analysis. The study provides evidence robust to several specifications from ordinary least squares and dynamic system GMM estimation techniques to show that: (1) FDI and ICT diffusion and corresponding components (ICT access, usage, skills) induce inclusive growth in SSA; (2) compared to its direct effect, FDI is remarkable in fostering shared growth in SSA in the presence of greater ICT diffusion, and (3) compared to ICT access and usage, ICT skills are more effective in driving inclusive growth in SSA. Overall FDI modulates ICT dynamics to engender positive synergy effects on inclusive growth. Policy recommendations are provided in line with the implementation of the African Continental Free Trade Area (AfCFTA) Agreement and the projected rise in FDI in SSA from 2022.

Keywords: FDI; ICT Access; ICT Diffusion; ICT Skills; ICT Usage; Inclusive Growth; sub- Saharan Africa (search for similar items in EconPapers)
JEL-codes: E23 F21 F30 L96 O55 (search for similar items in EconPapers)
Pages: 34
Date: 2021-05
New Economics Papers: this item is included in nep-int, nep-isf and nep-mac
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http://publications.excas.org/RePEc/exs/exs-wpaper ... b-Saharan-Africa.pdf Revised version, 2021 (application/pdf)

Related works:
Working Paper: ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa (2021) Downloads
Working Paper: ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa (2021) Downloads
Working Paper: ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa (2021) Downloads
Working Paper: ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa (2021) Downloads
Working Paper: ICT Diffusion, Foreign Direct Investment and Inclusive Growth in Sub-Saharan Africa (2021) Downloads
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