Kumar, Ronald R. (2012) Exploring the interactive effects of remittances, financial development and ICT in Sub-Saharan Africa: an ARDL Bounds Approach. African Journal of Economic and Sustainable Development, 1 (3). pp. 214-242. ISSN 2046-4770
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Abstract
In this paper, using the ARDL bounds approach and augmented Solow framework, we explore the impacts of capital inflows (remittances, foreign direct investment and overseas development assistance) and financial-technology inclusion viz. remittance on per worker income in Sub-Saharan Africa (SSA) for the periods 1970-2010. The results show that growth in the region is lead by capital productivity. Although information and communications technology (ICT) per se has a negative effect on income, when ICT is associated with financial development and remittances, the effects are positive in both short run and long run. Thus, there is a need for greater financial and technology inclusion - linking remittance industry with financial and ICT services. Overseas development assistance (ODA) shows a negative elasticity while FDI and remittances per se is negative and not statistically significant. SSA's predominantly ruralised economic structure further calls for greater accessibility, affordability and inclusivity of financial and ICT services linked to remittances market, development of critical, infrastructures, key sector reforms, and well managed and assessed ODA and FDI inflows for sustainable pro-growth development.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HE Transportation and Communications |
| Divisions: | Faculty of Business and Economics (FBE) > School of Economics |
| Depositing User: | Ronald Kumar |
| Date Deposited: | 30 Apr 2013 23:49 |
| Last Modified: | 22 Oct 2024 10:32 |
| URI: | http://repository.usp.ac.fj/id/eprint/5687 |
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