INFORMATION AND COMMUNICATION TECHNOLOGY ADOPTION AND INCLUSIVE GROWTH IN WEST AFRICA

INFORMATION AND COMMUNICATION TECHNOLOGY ADOPTION AND INCLUSIVE GROWTH IN WEST AFRICA ( Economics Education Project Topics)

ABSTRACT

West African countries experience economic growth in terms of financial figures but the issue of non -inclusiveness of this growth in terms of human development is becoming worrisome. This study empirically examines the role of information and communication technology adoption on human development and the direction of causality between them using data for 15 West African countries (2004 – 2014) estimated with the system Generalised Method of Moments (GMM) and Granger causality test. The GMM results showed that internet usage and investment in telecommunications have a statistically significant relationship, while mobile cell subscription has a statistically insignificant relationship with human development. The Granger causality test result showed that ICT adoption does not granger cause inclusive growth at the immediate and next annual time period. The study concludes by recommending the increase in investment in the telecommunications industry, the rendering of tax holidays to domestic firms in the IT industry, the creation of awareness of the productive use of ICT in all sectors of the economy for human development and inclusive growth to be achieved overtime.

CHAPTER ONE

INTRODUCTION

1.1        Background to the Study

Fundamental questions such as “what has been happening to poverty, unemployment and inequality?” were asked by Dudley Seers at a conference presentation in New Delhi (1969), which have generated contemporary relevance. Seers noted that if one or two of the three (poverty, inequality and unemployment) is increasing; it will be strange to say that the country concerned is achieving development – inclusive growth. These questions take into cognisance the social factors such as the standard of living of the populace in the definition of development. It buttresses further, the importance of inclusive growth.

Statistics show that economic growth has a significant role to play for the decline of poverty, inequality and unemployment in all economies. The level of poverty and inequality in relation to the economic growth rate in West African countries leave researchers in a quandary- dilemma (Abejo, 2013). In 2003, the growth rate of Gross Domestic Products (GDP) of Nigeria was 10.4 percent, which grew to 33.7 percent by 2004 (World Bank, 2016). As at 2013, there was an increase in the growth rate by 6.3 percent which showed increase but at a decreasing rate. Cape Verde (2007 – 2011) experienced an average GDP growth rate of 5.8 percent while Ghana experienced an average growth rate of 8.3 percent within that same period (Trading Economics, 2016). This growth was accompanied by improved market dynamics, increase in economic activities and despite that, the level of poverty, inequality and unemployment still don’t seem to be decreasing at a fast pace.

Poverty and Inequality levels are relatively high in West Africa. The Poverty headcount ratio statistics at $1.9 per day (2011 PPP – percent of population) shows that the percentage of poor people compared to the total population in West Africa reduced from 58 percent to 45 percent as at 1990 and 2010 respectively after much fluctuations and later increased to 45 percent at 2015 (World Bank, 2016).Despite this reduction, the rate is still very high compared to the total population. The Gini coefficient index of some countries in West Africa like Nigeria shows that West Africa is approaching the line of inequality despite the recent fall from 51.9 percent in 1996 to 42.9 percent in 2016. Unemployment rate in West Africa was varied for the different countries; having a range of at most – 30 percent and at least – 6 percent overtime (Trading Economics, 2016).

INFORMATION AND COMMUNICATION TECHNOLOGY ADOPTION AND INCLUSIVE GROWTH IN WEST AFRICA ( Economics Education Project Topics)