Linkages between Formal Institutions, ICT Adoption and Inclusive Human Development in Sub Saharan Africa

Published. In Catalyzing Development through ICT Adoption: The Developing World Experience. Edited by Harleen Kaur, Ewa Lechman, Adam Marszk. Chapter 10, pp. 175-203.

27 Pages Posted: 13 Aug 2016 Last revised: 13 Jun 2017

See all articles by Antonio Andrés

Antonio Andrés

Universidad Camilo José Cela

Voxi Heinrich S. Amavilah

REEPS

Simplice Asongu

African Governance and Development Institute

Date Written: August 12, 2016

Abstract

Using data for 49 African countries over the years spanning 2000-2012, and controlling for a wide range of factors, this study empirically assesses the effects of formal institutions on ICT adoption in developing countries. It deploys 2SLS and FE regression models, (a) to estimate what determines ICT adoption and (b) to trace how ICT adoption affects inclusive development. The results show that formal institutions affect ICT adoption in this group of countries, with government effectiveness having the largest positive effect and regulations the largest negative effect. Generally, formal institutions appear more important to ICT adoption in low income countries than middle income countries, whereas population and economic growth tend to constrain ICT adoption with low income countries more negatively affected than middle income countries. The results further demonstrate that ICT adoption affects development strongly, and that such effects are comparable to those of domestic credit and foreign direct investment. Ceteris paribus, external factors like foreign aid are more limiting to inclusive development than internal factors. This suggests that developing countries can enhance their ICT adoption for development by improving formal institutions and by strengthening domestic determinants of ICT adoption. Both represent opportunities for further research.

Keywords: formal institutions, ICT adoption, panel data models, cross-country analysis

JEL Classification: G20; I10; I32; O40; O55

Suggested Citation

Andrés, Antonio and Amavilah, Voxi Heinrich S. and Asongu, Simplice, Linkages between Formal Institutions, ICT Adoption and Inclusive Human Development in Sub Saharan Africa (August 12, 2016). Published. In Catalyzing Development through ICT Adoption: The Developing World Experience. Edited by Harleen Kaur, Ewa Lechman, Adam Marszk. Chapter 10, pp. 175-203. . Available at SSRN: https://ssrn.com/abstract=2822104 or http://dx.doi.org/10.2139/ssrn.2822104

Antonio Andrés

Universidad Camilo José Cela ( email )

Castillo de Alarcón, 49 Urb
Villafranca del Castillo
Madrid
Spain

HOME PAGE: http://www.ucjc.es

Voxi Heinrich S. Amavilah

REEPS ( email )

P.O. Box 38061
Phoenix, AZ 85069-8061
United States

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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