The Role of Openness in the Effect of ICT on Governance

Information Technology for Development, 25(3), pp. 503-531 (October, 2019).

36 Pages Posted: 6 Dec 2017 Last revised: 15 Oct 2019

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Jacinta Nwachukwu

Coventry University

Date Written: January 1, 2018

Abstract

The study investigates how openness influences information and communication technology (ICT) penetration for improved government quality in sub-Saharan Africa for the period 2000-2012. Openness is measured in terms of trade and financial globalisation whereas ICT is proxied with mobile phone and internet penetration rates. Ten bundled and unbundled governance indicators are used. The empirical evidence is based on Generalised Method of Moments with forward orthogonal deviations. The main findings are: First, financial openness has an edge over trade openness when combined with ICT to affect both economic and institutional governance. Second, mobile phones have an edge over internet penetration in complementing (i) trade openness for economic governance and (ii) financial openness for institutional governance. Third, net effects on political governance are consistently negative. Taken together, in the short-run, openness-driven ICT policies are more rewarding in terms of economic and institutional governance than political governance. Fourth, catch-up in governance is facilitated by the interaction between openness and ICT. Contributions of these findings to literature are discussed.

Keywords: Openness; ICT; Governance; Africa

JEL Classification: F40; O38; O40; O55; P37

Suggested Citation

Asongu, Simplice and Nwachukwu, Jacinta, The Role of Openness in the Effect of ICT on Governance (January 1, 2018). Information Technology for Development, 25(3), pp. 503-531 (October, 2019). . Available at SSRN: https://ssrn.com/abstract=3081104 or http://dx.doi.org/10.2139/ssrn.3081104

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Jacinta Nwachukwu

Coventry University ( email )

Priory Street
Coventry, CV1 5FB
United Kingdom

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