Do Information And Communications Technology (ICT) And Financial Development Contribute To Economic Diversification? Evidence From Sub-Saharan Africa

Abstract This study based on a panel of 37 Sub-Saharan Africa countries over the period of 2000 -2018 explores the effect of a number of ICT variables namely Fixed broad band, fixed line telephone, ICT imports, internet, mobile, and secure internet servers, and financial development measured by private sector domestic credit to GDP on economic diversification as measured by a computed Herfindahl Hirschman Index of Economic diversification. All data except rule of law were sourced from World Bank World Development Indicators, while rule of law was sourced from World Bank World Governance indicators. Model estimation was performed using pooled ordinary least squares regression, panel data fixed effects regression, and Generalised Method of Moments (GMM) regression. The results from findings indicated that the ICT variables, fixed line telephone, and ICT imports significantly reduced economic diversification, while internet use and mobile use were insignificant for boosting economic diversification, and fixed broadband and secure internet servers were insignificant in adversely affecting economic diversification. As regards financial development, it was insignificant in boosting economic diversification of SSA countries. The study recommended amongst others that Individuals in SSA countries should have improved access to ICT devices and governments’ should ensure adequate provision of quality ICT infrastructureJEL classification: C23, G10, G21, O11, O33, O55

Download Full-text

What determines financial inclusion in Sub-Saharan Africa?

African Journal of Economic and Management Studies ◽

10.1108/ajems-01-2016-0007 ◽

2017 ◽

Vol 8 (1) ◽

pp. 8-18 ◽

Cited By ~ 37

Author(s):

Sydney Chikalipah

Keyword(s):

International Development ◽

World Bank ◽

Financial Inclusion ◽

Sub Saharan Africa ◽

Data Set ◽

Content Type ◽

The World Bank ◽

The World ◽

Sub Saharan ◽

Ssa Countries

Purpose The purpose of this paper is to investigate the determinants of financial inclusion (FI) in Sub-Saharan Africa (SSA). Design/methodology/approach The paper uses the World Bank country-level data from 20 SSA countries for the year 2014. Findings The empirical findings in this study indicate that illiteracy is the major hindrance to FI in SSA. The findings provide useful information to government agencies and international development organisations. Also, the findings can help accelerate and strengthen FI strategies among SSA countries. Research limitations/implications Some countries were excluded from the final analysis due to lack of data. Practical implications In the last two decades, there has been renewed interest in fighting financial exclusion in Africa. Therefore, this study provide evidence which clearly shows that enhancing literacy levels in a country can immensely contribute towards building the financially inclusive societies in the SSA region. Originality/value To the best of the author’s knowledge, this is the first study to empirically test the determinants of FI in SSA using the World Bank FI data set. Furthermore, this is the first attempt to estimate the determinants of FI with a combined data of SSA countries.

Download Full-text

Investigating the Banking Sector Development Transmission Mechanism of Financial Development to Growth: Evidence from Sub-Saharan Africa (SSA)

Journal of Economics and Behavioral Studies ◽

10.22610/jebs.v11i2(j).2827 ◽

2019 ◽

Vol 11 (2(J)) ◽

pp. 120-131

Author(s):

Tochukwu Timothy Okoli ◽

Ajibola Rhoda Oluwafisayomi

Keyword(s):

Steady State ◽

Financial Development ◽

Banking Sector ◽

Dynamic Models ◽

Sub Saharan Africa ◽

Transmission Channel ◽

Steady State Growth ◽

Sub Saharan ◽

State Growth ◽

Ssa Countries

The search for financial developmentâ€™s transmission channel to growth has always been updated in the literature. While there has not been a consensus on this matter, empirical findings on finance-growth nexus have been ambiguous. Relying on this, we investigate its bank development transmission channel to growth in a panel of twenty-eight Sub-Saharan Africa (SSA) countries from 2000-2016. Having adopted the augmented Solow (1956) and Mankiw et al. (1992) growth model, the fixed effect and dynamic system GMM estimation techniques reveals a negative non-significant and positive significant direct impact of finance on growth in the static and dynamic models respectively, thereby suggesting institutional (dynamic) factors that can spur finance. Secondly, the non-linear effects of bank development had a direct positive significant impact on growth and its marginal-effects before and after the financial crisis of 2007/08 were relatively stable. This implies that banks in SSA were relatively stable in financial intermediation; therefore SSA countries need to reinforce and improve its banking policy through FinTechs adoption. Finally, the interaction between bank development and financial development significantly increase steady-state growth. This implies that SSA economies can promote steady-state growth from financial development only when a threshold of bank development is reached.

Download Full-text

Remittances and health outcomes in Sub-Saharan African countries: Understanding the role of financial development and institutional quality

Economic Annals ◽

10.2298/eka2129119b ◽

2021 ◽

Vol 66 (229) ◽

pp. 119-144

Author(s):

Uweis Bare ◽

Yasmin Bani ◽

Normaz Ismail ◽

Anitha Rosland

Keyword(s):

Health Outcomes ◽

Financial Development ◽

Institutional Quality ◽

Sub Saharan Africa ◽

African Countries ◽

Dynamic Panel ◽

Sub Saharan ◽

Ssa Countries

Sub-Saharan Africa (SSA) is one of the highest recipients of remittances; however, this is inconsistent with the region?s growth and the state of its weak healthcare systems. This paper therefore analyses the effect of remittances on health outcomes for 39 selected SSA countries over the period 1996 to 2016. It considers the channels through which remittances affect health outcomes, including financial development and institutional quality. Using dynamic panel estimation, we find that remittances sustain health outcomes, while both financial development and institutional quality complement remittances in this respect. SSA countries should therefore continue to improve their financial sectors and develop the quality of institutions to an adequate level. Achieving sound financial systems and institutions would both allow and attract a substantial amount of remittances, benefitting human capital and health outcomes and alleviating poverty.

Download Full-text

DOES REMITTANCE INFLOW PROMOTE HUMAN DEVELOPMENT IN SUB-SAHARAN AFRICA? AN EMPIRICAL INSIGHT

Global Economy Journal ◽

10.1142/s2194565920500219 ◽

2021 ◽

pp. 1-23

Author(s):

MALAYARANJAN SAHOO ◽

NARAYAN SETHI

Keyword(s):

Economic Growth ◽

Human Capital ◽

Human Development ◽

Financial Development ◽

Sub Saharan Africa ◽

Positive Effects ◽

Long Run ◽

Cointegration Tests ◽

Sub Saharan ◽

Ssa Countries

This paper examines the relationship between human development, remittances and other macroeconomic variables like life expectancy, human capital, FDI, inflation, economic growth and financial development by considering 31 Sub-Saharan African (SSA) countries during the period of 1990–2018. Kao and Fisher residual cointegration tests are applied to check the cointegration among the variables in the long-run. We apply fully modified OLS (FMOLS) and DOLS to show the long-run elasticity of explanatory variables on dependent variable. The result indicates that remittances have a positive and statistically significant effects on human development in SSA region. Similarly, government expenditure, human capital, inflation and economic growth have positive effects on human development in the region. Dumitrescu–Hurlin panel granger causality tests were observed such that there is a unidirectional causality between remittance and human development in SSA countries. However, human development and inflation rate show bi-directional relationship with each other. This paper suggests that public policies can be conceived to promote health, education and income, thereby encouraging and enhancing human development. Policymakers should also rely on other macroeconomic factors, such as government spending and financial development, to stimulate human development in SSA region.

Download Full-text

The Role of Institutions in the Finance-Inequality Nexus in Sub-Saharan Africa

Journal of Contextual Economics ◽

10.3790/schm.137.1-2.173 ◽

2017 ◽

Vol 137 (1-2) ◽

pp. 173-192

Author(s):

Ngozi Adeleye ◽

Evans Osabuohien ◽

Ebenezer Bowale

Keyword(s):

Income Inequality ◽

Financial Development ◽

Sub Saharan Africa ◽

Jel Codes ◽

Domestic Credit ◽

Sub Saharan ◽

Generalised Method Of Moments ◽

Control Of Corruption ◽

Ssa Countries

This study contributes to the literature on income inequality by providing evidence that financial development not only impacts income distribution, but the effects can improve when there is a strong institutional framework. Using the system-generalised method of moments (sys-GMM) technique on a sample of 42 Sub-Saharan African (SSA) countries from 1996 to 2015, our major findings are summarised as follows: (1) inequality is persistent in the region (2) financial development does not significantly reduce income inequality; and (3) the control of corruption and its interaction with domestic credit exhibit an inverted-U relation with income inequality. Thus, policies that will reduce income inequality require that corruption be controlled given increase in domestic credit. JEL Codes: F36; G21; O15

Download Full-text

Information asymmetry and financial dollarization in sub-Saharan Africa

African Journal of Economic and Management Studies ◽

10.1108/ajems-11-2017-0291 ◽

2018 ◽

Vol 9 (2) ◽

pp. 231-249 ◽

Cited By ~ 11

Author(s):

Simplice Asongu ◽

Ibrahim Raheem ◽

Venessa Tchamyou

Keyword(s):

Information Asymmetry ◽

Information Sharing ◽

Financial Development ◽

Ordinary Least Squares ◽

Sub Saharan Africa ◽

Content Type ◽

Sub Saharan ◽

Generalised Method Of Moments ◽

Development Outcomes ◽

Financial Dollarization

Purpose Financial dollarisation in sub-Saharan Africa (SSA) is most persistent compared to other regions of the world. The purpose of this paper is to complement the existing scant literature on dollarisation in Africa by assessing the role of information sharing offices (public credit registries and private credit bureaus) on financial dollarisation in 25 SSA countries for the period 2001-2012. Design/methodology/approach The empirical evidence is based on ordinary least squares and generalised method of moments (GMM). Findings The findings show that information sharing offices (which are designed to reduce information asymmetry) in the banking industry are a deterrent to dollarisation. The underpinning assumption that financial development reduces financial dollarisation is confirmed. Originality/value There is scant literature on the relevance of information sharing offices in development outcomes in Africa. While the establishment of these offices in most countries in the continent began in 2004, scholarship on the importance of these offices in financial development is sparse.

Download Full-text

A Review of Energy Communities in Sub-Saharan Africa as a Transition Pathway to Energy Democracy

Sustainability ◽

10.3390/su13042128 ◽

2021 ◽

Vol 13 (4) ◽

pp. 2128

Author(s):

Amollo Ambole ◽

Kweku Koranteng ◽

Peris Njoroge ◽

Douglas Logedi Luhangala

Keyword(s):

Stakeholder Engagement ◽

Energy Systems ◽

Sub Saharan Africa ◽

Energy Access ◽

Energy Projects ◽

Global North ◽

Sub Saharan ◽

Energy Justice ◽

Design Proposal ◽

Ssa Countries

Energy communities have received considerable attention in the Global North, especially in Europe, due to their potential for achieving sustainable energy transitions. In Sub-Saharan Africa (SSA), energy communities have received less attention partly due to the nascent energy systems in many emerging SSA states. In this paper, we argue that these nascent energy systems offer an opportunity to co-create energy communities that can tackle the energy access challenges faced by most SSA countries. To understand how such energy communities are realised in the sub-region, we undertake a systematic review of research on energy communities in 46 SSA countries. Our findings show that only a few energy projects exhibit the conventional characteristics of energy communities; In most of these projects, local communities are inadequately resourced to institute and manage their own projects. We thus look to stakeholder engagement approaches to propose co-design as a strategy for strengthening energy communities in SSA. We further embed our co-design proposal in energy democracy thinking to argue that energy communities can be a pathway towards equity and energy justice in SSA. We conclude that energy communities can indeed contribute to improving energy access in Africa, but they need an enabling policy environment to foster their growth and sustainability.

Download Full-text

Household structure, maternal characteristics and children’s stunting in sub-Saharan Africa: evidence from 35 countries

International Health ◽

10.1093/inthealth/ihz105 ◽

2020 ◽

Cited By ~ 2

Author(s):

Sanni Yaya ◽

Olanrewaju Oladimeji ◽

Emmanuel Kolawole Odusina ◽

Ghose Bishwajit

Keyword(s):

Birth Interval ◽

Household Wealth ◽

Household Structure ◽

Sub Saharan Africa ◽

Physical Growth ◽

Multiple Birth ◽

Rural Children ◽

Sub Saharan ◽

Ssa Countries ◽

Childhood Stunting

Abstract Background Adequate nutrition in early childhood is a necessity to achieve healthy growth and development, as well as a strong immune system and good cognitive development. The period from conception to infancy is especially vital for optimal physical growth, health and development. In this study we examined the influence of household structure on stunting in children <5 yrs of age in sub-Saharan Africa (SSA) countries. Methods Demographic and Health Survey data from birth histories in 35 SSA countries were used in this study. The total sample of children born within the 5 yrs before the surveys (2008 and 2018) was 384 928. Children whose height-for-age z-score throughout was <−2 SDs from the median of the WHO reference population were considered stunted. Percentages and χ2 tests were used to explore prevalence and bivariate associations of stunting. In addition, a multivariable logistic regression model was fitted to stunted children. All statistical tests were conducted at a p<0.05 level of significance. Results More than one-third of children in SSA countries were reportedly stunted. The leading countries include Burundi (55.9%), Madagascar (50.1%), Niger (43.9%) and the Democratic Republic of the Congo (42.7%). The percentage of stunted children was higher among males than females and among rural children than their urban counterparts in SSA countries. Children from polygamous families and from mothers who had been in multiple unions had a 5% increase in stunting compared with children from monogamous families and mothers who had only one union (AOR 1.05 [95% CI 1.02 to 1.09]). Furthermore, rural children were 1.23 times as likely to be stunted compared with urban children (AOR 1.23 [95% CI 1.16 to 1.29]). Children having a <24-mo preceding birth interval were 1.32 times as likely to be stunted compared with first births (AOR 1.32 [95% CI 1.26 to 1.38]). In addition, there was a 2% increase in stunted children for every unit increase in the age (mo) of children (AOR 1.02 [95% CI 1.01 to 1.02]). Multiple-birth children were 2.09 times as likely to be stunted compared with a singleton (AOR 2.09 [95% CI 1.91 to 2.28]). Conclusions The study revealed that more than one-third of children were stunted in SSA countries. Risk factors for childhood stunting were also identified. Effective interventions targeting factors associated with childhood stunting, such as maternal education, advanced maternal age, male sex, child’s age, longer birth interval, multiple-birth polygamy, improved household wealth and history of mothers’ involvement in multiple unions, are required to reduce childhood stunting in the region.

Download Full-text