Information Technology and Gender Economic Inclusion in Sub-Saharan Africa

Asongu, Simplice and Amankwah‐Amoah, Joseph and Nting, Rexon and Afrifa, Godfred (2020): Information Technology and Gender Economic Inclusion in Sub-Saharan Africa. Forthcoming in: Journal of Global Information Technology Management

Abstract

This study investigates how ICT affects gender economic inclusion via gender parity education channels. We examine the issue using data from 49 countries in sub-Saharan Africa for the period 2004-2018 divided into: (i) 42 countries for the period 2004-2014; and (ii) 49 countries for the period 2008-2018. Given the overwhelming evidence of negative net effects in the first sample, an extended analysis is used to establish thresholds of ICT penetration that nullify the established net negative effects. We found that in order to enhance female labor force participation, the following ICT thresholds are worthwhile for the secondary education channel: 165 mobile phone penetration per 100 people, 21.471 internet penetration per 100 people and 3.475 fixed broadband subscriptions per 100 people. For the same outcome of inducing a positive effect on female labor force participation, a 31.966 internet penetration per 100 people threshold, is required for the mechanism of tertiary school education. These computed thresholds have economic meaning and policy relevance because they are within the established ICT policy ranges. In the second sample, a mobile phone penetration threshold of 122.20 per 100 people is needed for the tertiary education channel to positively affect female labor force participation.

• Item Type: MPRA Paper
• Language: English
• Keywords: Africa; ICT; Gender; Inclusive development
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G20 - General; I - Health, Education, and Welfare > I1 - Health > I10 - General; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa

References

Abramowitz, M. (1986).“Catching-up, forging ahead or falling behind”, Journal of Economic History, 46(2), pp. 385-406.

Amankwah-Amoah, J. (2015). Solar energy in sub‐Saharan Africa: The challenges and opportunities of technological leapfrogging. Thunderbird International Business Review, 57, 15-31.

Amankwah-Amoah, J. (2016a). The evolution of science, technology and innovation policies: A review of the Ghanaian experience. Technological Forecasting and Social Change, 110, 134-142.

Amankwah-Amoah, J. (2016b). Coming of age, seeking legitimacy: The historical trajectory of African management research. Critical Perspectives on International Business, 12, 22-39.

Amankwah‐Amoah, J. (2018). Cultivating greater self‐confidence in African management research. Thunderbird International Business Review, 60, 511-522.

Amankwah-Amoah, J. (2019). Technological revolution, sustainability and development in Africa: Overview, emerging issues and challenges. Sustainable Development.

Amankwah-Amoah, J., &. Hinson, R. (2019). Contextual influences on new technology ventures: A study of domestic firms in Ghana. Technological Forecasting and Social Change, 143, 289-296.

Anyanwu, J.C., (2011). International Remittances and Income Inequality in Africa”. African Development Bank Working Paper No. 135, Tunis.

Arellano, M., &Bover, O., (1995). “Another look at the instrumental variable estimation of errorcomponents models”, Journal of Econometrics, 68(1), pp. 29-52.

Ashraf, Q., &Galor, O., (2013). “The Out of Africa Hypothesis, Human Genetic Diversity, and Comparative Economic Development”. American Economic Review, 103(1), pp. 1-46.

Asiedu, E., (2014). “Does Foreign Aid in Education Promote Economic Growth? Evidence From Sub-Saharan Africa”, Journal of African Development, 16(1), pp. 37-59.

Asongu, S. A., &Boateng, A., (2018). “Introduction to Special Issue: Mobile Technologies and Inclusive Development in Africa”, Journal of African Business, 19(3), pp. 297-301.

Asongu S. A. & De Moor, L., (2017). “Financial globalisation dynamic thresholds for financial development: evidence from Africa”, European Journal of Development Research, 29(1), pp. 192–212.

Asongu, S. A., &Kodila-Tedika, O., (2017). “Is Poverty in the African DNA (Gene)?”,South African Journal of Economics, 85(4), pp. 533-552.

Asongu, S. A., & le Roux, S. (2017). Enhancing ICT for inclusive human development in Sub-Saharan Africa. Technological Forecasting and Social Change, 118, 44-54.

Asongu, S. A., & le Roux, S., (2019). “Understanding Sub-Saharan Africa’s Extreme Poverty Tragedy”, International Journal of Public Administration, 42(6), pp. 457-467.

Asongu, S. A., &Nwachukwu, J. C., (2018).“Educational quality thresholds in the diffusion of knowledge with mobile phones for inclusive human development in sub-Saharan Africa”, Technological Forecasting and Social Change, 129(April), pp. 164-172.

Asongu, S. A., &Nwachukwu, J., (2016a). “Revolution empirics: predicting the Arab Spring” Empirical Economics, 51(2), pp. 439-482.

Asongu, S. A., &Odhiambo, N. M., (2018). “ICT, Financial Access and Gender Inclusion in the Formal Economic Sector: Evidence from Africa”, African Finance Journal, 20(2), pp. 46-66.

Asongu, S. A., &Odhiambo, N. M., (2019a).“Basic formal education quality, information technology, and inclusive human development in sub‐Saharan Africa”, Sustainable Development,27(3), pp. 419-428.

Asongu, S. A., &Odhiambo, N. M., (2019b). “Environmental Degradation and Inclusive Human Development in Sub‐ Saharan Africa”, Sustainable Development, 27(1), pp. 25-34.

Asongu, S. A., &Odhiambo, N. M., (2019c). “How Enhancing Information and Communication Technology has affected Inequality in Africa for Sustainable Development: An Empirical Investigation”, Sustainable Development, 27(4), pp. 647-656.

Asongu, S. A., &Nwachukwu, J. C., (2016c). “The Role of Governance in Mobile Phones for Inclusive Human Development in Sub-Saharan Africa”, Technovation, 55-56, pp. 1-13.

Asongu, S. A., &Nwachukwu, J. C., (2017).“Foreign Aid and Inclusive Development: Updated Evidence from Africa, 2005–2012”, Social Science Quarterly, 98(1), pp. 282-298.

Asongu, S. A., (2015). “The impact of mobile phone penetration on African inequality”, International Journal of Social Economics, 42(8), pp.706-716.

Asongu, S. A., (2018). “CO2 emission thresholds for inclusive human development in sub-Saharan Africa”, Environmental Science and Pollution Research, 25(26), pp. 26005–26019.

Asongu, S. A., le Roux, S., & Tchamyou, V. S., (2019c). “Essential information sharing thresholds for reducing market power in financial access: a study of the African banking industry”, Journal of Banking Regulation, 20(1), pp. 34–50.

Asongu, S. A., le Roux, S., Nwachukwu, J. C., &Pyke, C., (2019).“The Mobile Phone as an Argument for Good Governance in Sub-Saharan Africa”, Information Technology & People, 32(4), pp. 897-920.

Asongu, S. A., Nwachukwu, J. C., & Aziz, A., (2018). “Determinants of Mobile Phone Penetration: Panel Threshold Evidence from Sub-Saharan Africa”, Journal of Global Information Technology Management, 21(2), 81-110.

Asongu, S.A, &Nwachukwu, J. C., (2016b). “The Mobile Phone in the Diffusion of Knowledge for Institutional Quality in Sub Saharan Africa”, World Development, 86, pp.133-147.

Asongu, S.A, &Nwachukwu, J. C., (2016d).“Foreign aid and governance in Africa”, International Review of Applied Economics, 30(1), pp. 69-88.

Batuo, M. E., (2015). “The role of telecommunications infrastructure in the regional economic growth of Africa”, Journal of Development Areas, 49(1), pp. 313-330.

Barnett, G. A., Park, H. W., & Chung, C. J., (2016). “Evolution of the International Hyperlink Network”, Journal of Global Information Technology Management, 19(3), pp. 174-189.

Beck, T., Demirgüç-Kunt, A., & Levine, R., (2003), “Law and finance: why does legal origin matter?”,Journal of Comparative Economics, 31(4), pp. 653-675.

Bernard, A., & Jones, C. (1996).“Technology and convergence”, The Economic Journal, 106 (437), pp. 1037-1044.

Bicaba, Z., Brixiova, Z., &Ncube, M., (2017). “Can Extreme Poverty in Sub-Saharan Africa be Eliminated by 2030?,” Journal of African Development, 19(2), pp. 93-110.

Billon, M., Lera-Lopez, F., & Marco, R.,(2017). “Patterns of Combined ICT Use and Innovation in the European Regions”, Journal of Global Information Technology Management, 20(1), pp. 28-42.

Boateng, A., Asongu, S. A., Akamavi, R., &Tchamyou, V. S., (2018). “Information Asymmetry and Market Power in the African Banking Industry”, Journal of Multinational Financial Management, 44(March), pp. 69-83.

Bongomin, G. O. C., Ntayi, J. M., Munene J. C., &Malinga, C. A., (2018). “Mobile Money and Financial Inclusion in Sub-Saharan Africa: the Moderating Role of Social Networks”, Journal of African Business,18(4), pp. 361-384.

Brambor, T., Clark, W. M., &Golder, M., (2006). “Understanding Interaction Models: Improving Empirical Analyses”, Political Analysis, 14 (1), pp. 63-82.

Bruno, G., De Bonis, R., & Silvestrini, A., (2012). “Do financial systems converge? New evidence from financial assets in OECD countries”. Journal of Comparative Economics, 40(1), pp. 141-155.

Durugbo, C., & Amankwah‐Amoah, J. (2019). Global sustainability under uncertainty: How do multinationals craft regulatory policies? Corporate Social Responsibility and Environmental Management, 26(6), pp. 1500-1516.

Efobi, U. R., Tanaken, B. V., &Asongu, S. A., (2018). “Female Economic Participation with Information and Communication Technology Advancement: Evidence from Sub-Saharan Africa”, South African Journal of Economics, 86(2), pp. 231-246.

Fosu, A., (2013). “Growth of African Economies: Productivity, Policy Syndromes and the Importance of Institutions”, Journal of African Economies, 22(4), pp. 523–551.

Fujii, H., &Managi, S. (2019). “Decomposition analysis of sustainable green technology inventions in China”. Technological Forecasting and Social Change, 139, 10-16.

Kang, S. K., & Kaplan, S., (2019). “Working toward gender diversity and inclusion in medicine: myths and solutions”, The Lancet, 393(10171), pp. 579-586.

Khan, I., & Dongping, H., (2017). “Variations in the diffusion of social media content across different cultures: A communicative ecology perspective”, Journal of Global Information Technology Management, 20(3), pp. 156-170.

Krishnan, S., Ahmed, M., & AlSudiary, T., (2016). “Cultural Practices and Virtual Social Networks Diffusion: An International Analysis Using GLOBE Scores”, Journal of Global Information Technology Management, 19(3), pp. 154-173.

Kwan, L.Y-Y, & Chiu, C-Y (2015). “Country variations in diiferent innovation outputs: The interactive effect of institutional support and human capital”, Journal of Organizational Behavior, 36(7), pp. 1050-1070.

Lashitew, A. A., van Tulder, R., &Liasse, Y., (2019). “Mobile phones for financial inclusion: What explains the diffusion of mobile money innovations?”, Research Policy, 48(5), pp. 1201-1215.

Lee, K., & Joshi, K., (2016). “Importance of Globalization in the Information Technology Convergence Era”, Journal of Global Information Technology Management, 19(1), pp. 1-5.

Meniago, C., &Asongu, S. A., (2018). “Revisiting the finance-inequality nexus in a panel of African countries”, Research in International Business and Finance, 46 (December), pp. 399-419.

Muthinja, M. M., &Chipeta, C., (2018). “What Drives Financial Innovations in Kenya’s Commercial Banks? An Empirical Study on Firm and Macro-Level Drivers of Branchless Banking”, Journal of African Business, 18(4), pp. 385-408.

Nkurunziza, M., (2018). “Sub-Saharan Africa, losing $2.5 trillion due to gender inequality – World Bank”, The New Times https://www.newtimes.co.rw/business/sub-saharan-africa-losing-25-trillion-due-gender-inequality-world-bank (Accessed: 01/01/2018).

Osabuohien, E. S., &Efobi, U. R., (2013). “Africa’s money in Africa”, South African Journal of Economics, 81(2), pp. 292-306.

Robinson, M., (2015). “Why gender equality is key to sustainable development”, World Economic Forum. https://www.weforum.org/agenda/2015/03/why-gender-equality-is-integral-to-sustainable-development/ (Accessed: 02/01/2018).

Roodman, D., (2009a). “A Note on the Theme of Too Many Instruments”, Oxford Bulletin of Economics and Statistics, 71(1), pp. 135-158.

Roodman, D., (2009b). “How to do xtabond2: An introduction to difference and system GMM in Stata”, Stata Journal, 9(1), pp. 86-136.

Shaikh, A.A., &Karjaluoto, H. (2015).“Mobile banking adoption: A literature review”, Telematics and Informatics, 32(1), pp. 129-142.

Sheng, J., Amankwah-Amoah, J., & Wang, X. (2018). “Technology in the 21st century: New challenges and opportunities”. Technological Forecasting and Social Change. DOI: 10.1016/j.techfore.2018.06.009.

Sheng, J., Amankwah‐Amoah, J., Wang, X., & Khan, Z. (2019). Managerial Responses to Online Reviews: A Text Analytics Approach. British Journal of Management, 30(2), 315-327.

Smith, M.L., Spence, R., & Rashid, A. (2011). “Mobile phones and expanding human capabilities”, Information Technologies and International Development, 7(3), pp. 77-88.

Sugiawan, Y., & Managi, S. (2019). “New evidence of energy-growth nexus from inclusive wealth”. Renewable and Sustainable Energy Reviews, 103, 40-48.

Swamy, V. (2014). “Financial inclusion, gender dimension, and economic impact on poor households”. World development, 56, 1-15.

Tchamyou, V. S., &Asongu, S. A., (2017).“Information Sharing and Financial Sector Development in Africa”, Journal of African Business, 18(7), pp. 24-49.

Tchamyou, V. S., (2017). “The Role of Knowledge Economy in African Business”, Journal of the Knowledge Economy, 8(4), pp. 1189-1228.

Tchamyou, V. S., (2020a). “Education, Lifelong learning, Inequality and Financial access:Evidence from African countries”. Contemporary Social Science. 15(1), pp. 7-25.

Tchamyou, V. S., (2020b). “Financial Access, Governance and the Persistence of Inequality in Africa: Mechanisms and Policy instruments”, Journal of Public Affairs: Forthcoming.

Tchamyou, V. S., (2019a).“ Essays on inequality, knowledge economy and financial development in Africa”, Unpublished PhD Thesis, Antwerp.

Tchamyou, V. S., (2019b).“The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality”. Journal of African Business, 20(3), pp.317-338.

Tchamyou, V.S., Erreygers, G., &Cassimon, D., (2019a). “Inequality, ICT and Financial Access in Africa”, Technological Forecasting and Social Change, 139(February), pp. 169-184.

Tchamyou, V. S., Asongu, S. A., &Odhiambo, N. M., (2019b). “The role of ICT in modulating the effect of education and lifelong learning on income inequality and economic growth in Africa”, African Development Review, 31(3), pp. 261-274.

Uduji, J.I. &Okolo-Obasi, E. N., (2018a). “Young rural women’s participation in the e-wallet programme and usage intensity of modern agricultural inputs in Nigeria”, Gender, Technology and Development, 22(1), pp. 59-81.

Uduji, J.I. &Okolo-Obasi, E. N., (2018b). “Adoption of improved crop varieties by involving farmers in the e-wallet programme in Nigeria”. Journal of Crop Improvement, Journal of Crop Improvement, 32 (5), pp. 717-737.

United Nations (2015). The Millennium Development Goals Report. New York: UN.

United Nations (2018). The Sustainable Development Goals Report 2018. New York: UN.

Ureta, S. (2008).“Mobilising poverty?: Mobile phone use and everyday spatial mobility among low-income families in Santiago”, Chile, Information Society, 24(2), pp. 83-92.

Warren, A. M., Jaafar, N. I., & Sulaiman, A., (2016). “Youth Civic Engagement Behavior on Facebook: A Comparison of Findings from Malaysia and Indonesia”, Journal of Global Information Technology Management, 19(2), pp. 128-142.

Whiting, K., (2019). “7 surprising and outrageous stats about gender inequality”, World Economic Forum, https://www.weforum.org/agenda/2019/03/surprising-stats-about-gender-inequality/(Accessed: 25/06/2019).

World Bank (2018). “Globally, Countries Lose $160 Trillion in Wealth Due to Earnings Gaps Between Women and Men”, The World Bank. https://www.worldbank.org/en/news/press-release/2018/05/30/globally-countries-lose-160-trillion-in-wealth-due-to-earnings-gaps-between-women-and-men (Accessed: 03/01/2018).

World Bank (2016). World Development Report 2016: Digital Dividends. World Bank Publications.

You, K., Dal Bianco, S., Lin, Z., & Amankwah-Amoah, J. (2019). Bridging technology divide to improve business environment: Insights from African nations. Journal of Business Research, 97, 268-280.