ICT and Technical Inefficiency in SADC: A Stochastic Frontier Analysis

Biyase Mduduzi; Udimal Thomas; Kirsten Frederich; Mapumulo Noluthando

doi:10.31920/1750-4562/2022/V17N3A3

ICT and Technical Inefficiency in SADC: A Stochastic Frontier Analysis

Biyase Mduduzi, Udimal Thomas, Kirsten Frederich, Mapumulo Noluthando

Research output: Contribution to journal › Article › peer-review

Abstract

This paper investigated the effect of information and communications technology (ICT) on technical inefficiency in the Southern African Democratic Community (SADC). A stochastic production and technical inefficiency functions were simultaneously estimated, using panel data on 16 SADC member countries between 1980 and 2017. The study provided evidence that ICT can reduce technical inefficiency. Further, evidence shows that capital, labour and human capital are significant in increasing countries'outputs. This paper concluded that the Southern African Democratic Community needs to ensure that investment in ICT is increased across its member states as a means to reduce technical inefficiency and increase output.

Original language	English
Pages (from-to)	47-65
Number of pages	19
Journal	African Journal of Business and Economic Research
Volume	17
Issue number	3
DOIs	https://doi.org/10.31920/1750-4562/2022/V17N3A3
Publication status	Published - 1 Sept 2022
Externally published	Yes

Keywords

Economic growth
ICT
SADC
Stochastic production frontier
Technical efficiency

ASJC Scopus subject areas

Business and International Management
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.31920/1750-4562/2022/V17N3A3

Cite this

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title = "ICT and Technical Inefficiency in SADC: A Stochastic Frontier Analysis",

abstract = "This paper investigated the effect of information and communications technology (ICT) on technical inefficiency in the Southern African Democratic Community (SADC). A stochastic production and technical inefficiency functions were simultaneously estimated, using panel data on 16 SADC member countries between 1980 and 2017. The study provided evidence that ICT can reduce technical inefficiency. Further, evidence shows that capital, labour and human capital are significant in increasing countries'outputs. This paper concluded that the Southern African Democratic Community needs to ensure that investment in ICT is increased across its member states as a means to reduce technical inefficiency and increase output.",

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AU - Thomas, Udimal

AU - Frederich, Kirsten

AU - Noluthando, Mapumulo

PY - 2022/9/1

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AB - This paper investigated the effect of information and communications technology (ICT) on technical inefficiency in the Southern African Democratic Community (SADC). A stochastic production and technical inefficiency functions were simultaneously estimated, using panel data on 16 SADC member countries between 1980 and 2017. The study provided evidence that ICT can reduce technical inefficiency. Further, evidence shows that capital, labour and human capital are significant in increasing countries'outputs. This paper concluded that the Southern African Democratic Community needs to ensure that investment in ICT is increased across its member states as a means to reduce technical inefficiency and increase output.

KW - Economic growth

KW - ICT

KW - SADC

KW - Stochastic production frontier

KW - Technical efficiency

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JF - African Journal of Business and Economic Research

IS - 3

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ICT and Technical Inefficiency in SADC: A Stochastic Frontier Analysis

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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