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The role of governance in the effect of the internet on financial inclusion in Sub-Saharan Africa

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  • Armand Fréjuis Akpa
  • Simplice A. Asongu
  • Michael E. Batuo

Abstract

This paper analyses the role of governance quality in the relationship between the Internet and financial inclusion in Sub-Saharan African countries. The study uses data from the International Monetary Fund (IMF) database for indicators of financial inclusion, World Development Indicators (WDI) for Internet users and World Governance Indicators (WGI) for governance indicators from 2004 to 2020. Analyzing the data using the System Generalized Method of Moments (SGMM), the results show that the Internet can be effectively complemented with the quality of governance to improve financial inclusion. Thresholds of governance that are needed for the Internet to promote financial inclusion are provided. Policies aimed at reinforcing the quality of governance in SSA countries could help consolidate Internet infrastructure to promote Internet usage and, in turn, improve financial inclusion. Other policy implications are discussed.

Suggested Citation

  • Armand Fréjuis Akpa & Simplice A. Asongu & Michael E. Batuo, 2025. "The role of governance in the effect of the internet on financial inclusion in Sub-Saharan Africa," Information Technology for Development, Taylor & Francis Journals, vol. 31(3), pages 664-682, July.
    • Handle: RePEc:taf:titdxx:v:31:y:2025:i:3:p:664-682
    DOI: 10.1080/02681102.2024.2412607
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    Cited by:

    1. Simplice A. Asongu & Jean R. F. K. Bouanza & Armand F. Akpa, 2024. "Governance and Structural Transformation in Africa: Thresholds of Lifelong Gender Inclusive Education," Working Papers of the African Governance and Development Institute. 24/037, African Governance and Development Institute..
    2. Charles S. Saba & Simplice A. Asongu & Nicholas Ngepah & Yolande E. Ngoungou, 2023. "Governance in the exploration of global and regional determinants of ICT development," Working Papers of the African Governance and Development Institute. 23/040, African Governance and Development Institute..

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    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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