Remittances, ICT and Doing Business in Sub-Saharan Africa

Journal of Economic Studies, 46(1), pp.35-54 (2019)

30 Pages Posted: 26 Apr 2018 Last revised: 14 Dec 2018

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Nicholas Biekpe

University of Cape Town (UCT)

Vanessa S. Tchamyou

African Governance and Development Institute

Date Written: April 8, 2018

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.

Keywords: Remittances; ICT; Doing business; Development; Africa

JEL Classification: F24; F63; L96 O30; O55

Suggested Citation

Asongu, Simplice and Biekpe, Nicholas and S. Tchamyou, Vanessa, Remittances, ICT and Doing Business in Sub-Saharan Africa (April 8, 2018). Journal of Economic Studies, 46(1), pp.35-54 (2019). Available at SSRN: https://ssrn.com/abstract=3158854 or http://dx.doi.org/10.2139/ssrn.3158854

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Nicholas Biekpe

University of Cape Town (UCT) ( email )

Private Bag X3
Rondebosch, Western Cape 7701
South Africa

Vanessa S. Tchamyou

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

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