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Does Ict Spur Poverty Reduction In South Africa: An Empirical Investigation

Author

Listed:
  • Mercy T. MUSAKWA

    (University of South Africa (Economics Department, College of Economic & Management Science, Pretoria, South Africa))

  • Nicholas M. ODHIAMBO

    (University of South Africa (Economics Department, College of Economic & Management Science, Pretoria, South Africa))

Abstract

This study examines the asymmetric impact of ICT on poverty reduction in South Africa using the NARDL approach. The study was motivated by the simultaneous existence of high poverty levels alongside increased government support for ICT adoption as a means to leverage economic development. The main objective of this study is to examine whether ICT can be a panacea for poverty alleviation in South Africa. Using annual time-series data from 1983 to 2021, the study found that positive changes in ICT are associated with poverty reduction in both the short and long run. However, negative changes in ICT were found to have no significant impact on poverty reduction. The results were corroborated by the dynamic multiplier graph, which showed that positive ICT shocks have a stronger and more sustained impact on poverty reduction compared to negative shocks.

Suggested Citation

  • Mercy T. MUSAKWA & Nicholas M. ODHIAMBO, 2025. "Does Ict Spur Poverty Reduction In South Africa: An Empirical Investigation," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 34(2), pages 30-43, December.
    • Handle: RePEc:ora:journl:v:34:y:2025:i:2:p:30-43
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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