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Remittances, ICT and Doing Business in Sub-Saharan Africa

Author

Listed:
  • Simplice A. Asongu

    () (Yaoundé/Cameroon)

  • Nicholas Biekpe

    () (University of Cape Town, Cape Town, South Africa)

  • Vanessa S. Tchamyou

    () (Antwerp, Belgium)

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.

Suggested Citation

  • Simplice A. Asongu & Nicholas Biekpe & Vanessa S. Tchamyou, 2018. "Remittances, ICT and Doing Business in Sub-Saharan Africa," AFEA Working Papers 18/009, African Finance and Economic Association (AFEA).
  • Handle: RePEc:afe:wpaper:18/009
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    References listed on IDEAS

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    More about this item

    Keywords

    Remittances; ICT; Doing business; Development; Africa;

    JEL classification:

    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • 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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