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Remittances, ICT and Doing Business in Sub-Saharan Africa

Author

Listed:
  • Simplice A. Asongu

    (Yaoundé/Cameroon)

  • Nicholas Biekpe

    (University of Cape Town, Cape Town, South Africa)

  • Vanessa S. Tchamyou

    (Antwerp, Belgium)

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.

Suggested Citation

  • Simplice A. Asongu & Nicholas Biekpe & Vanessa S. Tchamyou, 2018. "Remittances, ICT and Doing Business in Sub-Saharan Africa," AFEA Working Papers 18/009, African Finance and Economic Association (AFEA).
    • Handle: RePEc:afe:wpaper:18/009
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    Cited by:

    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Remittances and value added across economic sub-sectors in Sub-Saharan Africa," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(1), pages 23-41, February.
    2. Adeabah, David & Asongu, Simplice & Andoh, Charles, 2021. "Remittances, ICT and pension income coverage: The international evidence," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    3. Usman Alhassan, 2023. "E-government and the impact of remittances on new business creation in developing countries," Economic Change and Restructuring, Springer, vol. 56(1), pages 181-214, February.
    4. Efobi, Uchenna & Asongu, Simplice & Okafor, Chinelo & Tchamyou, Vanessa & Tanankem, Belmondo, 2019. "Remittances, finance and industrialisation in Africa," Journal of Multinational Financial Management, Elsevier, vol. 49(C), pages 54-66.
    5. S. Nyasha & N.M. Odhiambo, 2022. "The impact of remittances on economic growth: empirical evidence from South Africa," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 15(2), pages 254-272.
    6. Simplice Asongu & Rexon Nting, 2020. "The comparative economics of financial access in gender economic inclusion," African Journal of Economic and Management Studies, Emerald Group Publishing Limited, vol. 12(2), pages 193-207, December.
    7. C. Massidda & R. Piras, 2024. "Funding sources, colonial legacy, and new firms’ creation in Africa," Economic Change and Restructuring, Springer, vol. 57(5), pages 1-68, October.
    8. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Foreign Direct Investment, Information Technology, And Total Factor Productivity Dynamics In Sub‐Saharan Africa," World Affairs, John Wiley & Sons, vol. 186(2), pages 469-506, June.
    9. Simplice A. Asongu & Joseph Nnanna & Paul N. Acha-Anyi, 2020. "On the simultaneous openness hypothesis: FDI, trade and TFP dynamics in Sub-Saharan Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-27, December.
    10. Bettin, Giulia & Massidda, Carla & Piras, Romano, 2024. "The intertwined role of social and financial remittances in new firms' creation," Journal of International Management, Elsevier, vol. 30(1).
    11. S. Nyasha & N.M. Odhiambo, 2021. "The Impact of Remittances on Economic Growth: Empirical Evidence from South Africa," Working Papers AESRI-2021-21, African Economic and Social Research Institute (AESRI), revised Jan 2021.

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    More about this item

    Keywords

    Remittances; ICT; Doing business; Development; Africa;
    All these keywords.

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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