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Remittances, the diffusion of information and industrialisation in Africa

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  • Simplice A. Asongu
  • Nicholas M. Odhiambo

Abstract

This study examines the role of information and communication technology (ICT) on remittances for industrialisation in a panel of 49 African countries for the period 1980–2014. The empirical evidence is based on three simultaneity-robust estimation techniques, namely: (i) Instrumental Fixed Effects (FE) in order to control for the unobserved heterogeneity; (ii) Generalised Method of Moments (GMM) to account for persistence in industrialisation; and (iii) Instrumental Quantile Regressions (QR) to control for initial levels of industrialisation. Our best estimators are from FE and QR estimations because the GMM regression outputs largely fail post-estimation diagnostic tests. The following findings are established: (i) There are positive marginal effects from the interaction between remittances and ICT in the FE regressions whereas there are negative marginal impacts from the interaction between remittances and ICT; (ii) Interactions between remittances and mobile phone penetration are positive in the bottom and 90th quantile whereas the interaction between internet penetration and remittances is positive in the bottom and top quantiles of the industrialisation distribution. Overall, the role of ICT in remittances for industrialisation is much more apparent when existing levels of industrialisation are accounted for.

Suggested Citation

  • Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Remittances, the diffusion of information and industrialisation in Africa," Contemporary Social Science, Taylor & Francis Journals, vol. 15(1), pages 98-117, January.
  • Handle: RePEc:taf:rsocxx:v:15:y:2020:i:1:p:98-117
    DOI: 10.1080/21582041.2019.1618898
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    1. Usman Alhassan, 2023. "E-government and the impact of remittances on new business creation in developing countries," Economic Change and Restructuring, Springer, vol. 56(1), pages 181-214, February.
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    3. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Governance, capital flight and industrialisation in Africa," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-22, December.
    4. Asongu, Simplice A. & Adegboye, Alex & Nnanna, Joseph, 2021. "Promoting female economic inclusion for tax performance in Sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 159-170.
    5. Yugang He, 2024. "Artificial intelligence and socioeconomic forces: transforming the landscape of religion," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    6. Tii N. Nchofoung & Simplice A. Asongu & Vanessa S. Tchamyou, 2021. "The political implication of women and industrialisation in Africa," Research Africa Network Working Papers 21/072, Research Africa Network (RAN).
    7. Yinka S Hammed & Solomon T Ademosu, 2023. "ICT Innovation, FDI and Economic Growth: Evidence from BRICS," Journal of Economics and Behavioral Studies, AMH International, vol. 15(2), pages 20-32.
    8. S. Nyasha & N.M. Odhiambo, 2022. "The impact of remittances on economic growth: empirical evidence from South Africa," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 15(2), pages 254-272.
    9. Asongu, Simplice A. & Adegboye, Alex & Ejemeyovwi, Jeremiah & Umukoro, Olaoluwa, 2021. "The mobile phone technology, gender inclusive education and public accountability in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 45(4).
    10. Pamela E. Ofori & Isaac K. Ofori & Simplice A. Asongu, 2022. "Towards efforts to enhance tax revenue mobilisation in Africa: Exploring the interaction between industrialisation and digital infrastructure," Working Papers of the African Governance and Development Institute. 22/045, African Governance and Development Institute..
    11. Chimere O. Iheonu & Simplice A. Asongu & Shedrach A. Agbutun & Innocent A. Ifelunini, 2021. "Democracy and Terrorism in Africa," Working Papers of the African Governance and Development Institute. 21/089, African Governance and Development Institute..
    12. Musa Oduola & Mustapha O. Bello & Rahmon Popoola, 2022. "Foreign Direct Investment, Institution and Industrialisation in Sub-Saharan Africa," Economic Change and Restructuring, Springer, vol. 55(2), pages 577-606, May.
    13. Simplice A. Asongu & John Kuada, 2020. "Building knowledge economies in Africa: an introduction," Contemporary Social Science, Taylor & Francis Journals, vol. 15(1), pages 1-6, January.
    14. Simplice Asongu & Nicholas M. Odhiambo, 2024. "The role of foreign aid in the nexus between capital flight and unemployment in sub-Saharan Africa," Working Papers 24/007, European Xtramile Centre of African Studies (EXCAS).
    15. Isaac K. Ofori & Pamela E. Ofori & Simplice A. Asongu, 2021. "Towards Efforts to Enhance Tax Revenue Mobilisation in Africa: Exploring Synergies between Industrialisation and ICTs," Research Africa Network Working Papers 21/058, Research Africa Network (RAN).
    16. S. Nyasha & N.M. Odhiambo, 2021. "The Impact of Remittances on Economic Growth: Empirical Evidence from South Africa," Working Papers AESRI-2021-21, African Economic and Social Research Institute (AESRI), revised Jan 2021.
    17. Adegboye, Alex & Uwuigbe, Uwalomwa & Ojeka, Stephen & Uwuigbe, Olubukunola & Dahunsi, Olajide & Adegboye, Kofo, 2022. "Driving information communication technology for tax revenue mobilization in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 46(7).
    18. Chimere O. Iheonu & Hyacinth E. Ichoku, 2021. "Poverty and terrorism in Africa: Understanding the nexus based on existing levels of terrorism," Poverty & Public Policy, John Wiley & Sons, vol. 13(3), pages 254-272, September.
    19. Dieudonné Mignamissi & Bernard Nguekeng, 2022. "Trade openness-industrialization nexus revisited in Africa," Economic Change and Restructuring, Springer, vol. 55(4), pages 2547-2575, November.

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    More about this item

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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