ICT, Financial Inclusion, and Growth Evidence from African Countries

46 Pages Posted: 13 Apr 2011

See all articles by Kangni Kpodar

Kangni Kpodar

International Monetary Fund (IMF)

Mihasonirina Andrianaivo

affiliation not provided to SSRN

Date Written: April 2011


This paper studies the impact of information and communication technologies (ICT), especially mobile phone rollout, on economic growth in a sample of African countries from 1988 to 2007. Further, we investigate whether financial inclusion is one of the channels through which mobile phone development influences economic growth. In estimating the impact of ICT on economic growth, we use a wide range of ICT indicators, including mobile and fixed telephone penetration rates and the cost of local calls. We address any endogeneity issues by using the System Generalized Method of Moment (GMM) estimator. Financial inclusion is captured by variables measuring access to financial services, such as the number of deposits or loans per head, compiled by Beck, Demirguc-Kunt, and Martinez Peria (2007) and the Consultative Group to Assist the Poor (CGAP, 2009). The results confirm that ICT, including mobile phone development, contribute significantly to economic growth in African countries. Part of the positive effect of mobile phone penetration on growth comes from greater financial inclusion. At the same time, the development of mobile phones consolidates the impact of financial inclusion on economic growth, especially in countries where mobile financial services take hold.

Keywords: Africa, Cross country analysis, Developing countries, Economic growth, Information technology

Suggested Citation

Kpodar, Kangni and Andrianaivo, Mihasonirina, ICT, Financial Inclusion, and Growth Evidence from African Countries (April 2011). IMF Working Paper No. 11/73, Available at SSRN: https://ssrn.com/abstract=1808446

Kangni Kpodar (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Mihasonirina Andrianaivo

affiliation not provided to SSRN ( email )

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