TY - JOUR
T1 - The Nexus Between ICT Diffusion, Financial Development, Industrialization and Economic Growth
T2 - Evidence from Sub-Saharan African Countries
AU - Saba, Charles Shaaba
AU - Ngepah, Nicholas
AU - Odhiambo, Nicholas Mbaya
N1 - Publisher Copyright:
© 2025 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
PY - 2025
Y1 - 2025
N2 - This study examines the nexus between ICT diffusion, financial development, industrialization, and economic growth using a novel panel VAR approach in the generalized method of moments (GMM) estimation. Different proxies were used to measure the aforementioned variables, diverging from the commonly used measures in prior literature. Based on panel data covering 45 countries from 2000 to 2018, the empirical results suggest that there is bidirectional causality between ICT diffusion and economic growth, financial development and industrialization, financial development and economic growth, as well as industrialization and economic growth. The findings further provide evidence that financial development, levels of industrialization, and economic growth are not significant or positive predictors of ICT diffusion. The study’s implications for policy are profound, suggesting that SSA governments should adopt a holistic approach to economic policy development, integrating ICT, financial, and industrial policies to harness these interdependencies effectively.
AB - This study examines the nexus between ICT diffusion, financial development, industrialization, and economic growth using a novel panel VAR approach in the generalized method of moments (GMM) estimation. Different proxies were used to measure the aforementioned variables, diverging from the commonly used measures in prior literature. Based on panel data covering 45 countries from 2000 to 2018, the empirical results suggest that there is bidirectional causality between ICT diffusion and economic growth, financial development and industrialization, financial development and economic growth, as well as industrialization and economic growth. The findings further provide evidence that financial development, levels of industrialization, and economic growth are not significant or positive predictors of ICT diffusion. The study’s implications for policy are profound, suggesting that SSA governments should adopt a holistic approach to economic policy development, integrating ICT, financial, and industrial policies to harness these interdependencies effectively.
KW - economic growth
KW - financial development
KW - ICT diffusion
KW - industrialization
KW - Sub-Saharan African countries
UR - http://www.scopus.com/inward/record.url?scp=85215312564&partnerID=8YFLogxK
U2 - 10.1080/15228916.2025.2451550
DO - 10.1080/15228916.2025.2451550
M3 - Article
AN - SCOPUS:85215312564
SN - 1522-8916
JO - Journal of African Business
JF - Journal of African Business
ER -