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Moderating effect of ICT on the relationship between governance quality and income inequality in sub-Saharan Africa

Author

Listed:
  • Toyo A. M. Dossou

    (Sichuan, China.)

  • Emmanuelle N. Kambaye

    (Sichuan, China)

  • Mesfin W. Berhe

    (Sichuan , China)

  • Simplice A. Asongu

    (Yaoundé, Cameroon)

Abstract

The ICT-income inequality relationship and the governance quality-income inequality nexus have been investigated in recent years. However, the moderating effect of ICT on the governance quality-income inequality linkage has been largely ignored. To fill this gap in the literature, this study examines the moderating effect of ICT on the relationship between governance quality and income inequality for a panel of 42 sub-Saharan African economies over the period 1996-2020. To achieve this goal, the generalized method of moments (GMM) estimation technique has been adopted. The results reveal that while ICT contributes to the improvement of income distribution, governance quality contributes to the exacerbation of income inequality. Interestingly, the results unveil that the promotion of E-governance could contribute to improve social welfare and reduce income inequality. Policy implications are given based on the findings of this study. For instance, institutional reforms must be conducted by considering ICT as an important factor to improve income distribution.

Suggested Citation

  • Toyo A. M. Dossou & Emmanuelle N. Kambaye & Mesfin W. Berhe & Simplice A. Asongu, 2023. "Moderating effect of ICT on the relationship between governance quality and income inequality in sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 23/021, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:23/021
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    References listed on IDEAS

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    9. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
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    Cited by:

    1. Abdullah Almounsor & Sami Mensi, 2024. "The Relationship Between Financial Development, Institutions Quality, and Income Inequality from the Sub-Saharan Africa Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 14307-14338, September.
    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..
    3. Alastaire S. Alinsato & Toyo Amègnonna Marcel Dossou & Pascal K. Dossou & Emmanuelle N. Kambaye & Simplice A. Asongu, 2025. "The financial development and renewable energy consumption nexus in Africa: Does the quality of governance matter?," Natural Resources Forum, Blackwell Publishing, vol. 49(3), pages 2845-2868, August.
    4. Mallika Saha & Kumar Debasis Dutta & Touhidur Rahman, 2025. "Balancing financialization and equity: the crucial role of democratic governance," Future Business Journal, Springer, vol. 11(1), pages 1-12, December.
    5. Ouinsou, Christ Arsène & Chabossou, Augustin Foster Comlan, 2024. "New technologies and income inequalities into Sub-Saharan Africa: Using a new technological indicator," Telecommunications Policy, Elsevier, vol. 48(9).
    6. Emmanuel Baffour Gyau & Yaya Li & Michael Appiah, 2025. "Global digital transformation: discovering the impact of digitalization on income inequality in OECD countries, the moderating role of globalization," Economic Change and Restructuring, Springer, vol. 58(1), pages 1-37, February.
    7. Dossou, Toyo Amègnonna Marcel & Ndomandji Kambaye, Emmanuelle & Asongu, Simplice A. & Alinsato, Alastaire Sèna & Berhe, Mesfin Welderufael & Dossou, Kouessi Pascal, 2023. "Foreign direct investment and renewable energy development in sub-saharan Africa: Does governance quality matter?," Renewable Energy, Elsevier, vol. 219(P1).
    8. Qiang Wang & Zhuang Yang & Rongrong Li, 2024. "Bridging energy transition and income inequality: The moderating effect of institutional transparency," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(5), pages 5031-5057, October.

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