The Role of Mobile Phones in Governance-Driven Technology Exports in Sub-Saharan Africa

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The Role of Mobile Phones in Governance-Driven Technology Exports in Sub-Saharan Africa Simplice A. Asongu 1,2 & Ndemaze Asongu 1

Received: 10 January 2017 / Accepted: 3 September 2017 # Springer Science+Business Media, LLC 2017

Abstract This study assesses how the mobile phone influences governance to improve information and communication technology (ICT) exports in sub-Saharan Africa with data from 2000 to 2012. The empirical evidence is based on the generalised method of moments and three main governance concepts are used, namely (i) institutional (comprising the rule of law and corruption control), (ii) political (involving political stability/ no violence and voice and accountability) and (iii) economic (including regulation quality and government effectiveness) governance. The following findings are established. First, there are positive net effects on ICT goods exports from independent interactions between mobile phones and ‘political stability’, ‘voice and accountability’ and corruption control. Second, significant net effects are not apparent from independent interactions between mobile phones and government effectiveness, regulation quality and the rule of law. Theoretical and practical implications are discussed. Keywords Knowledge economy . Development . Africa JEL Classification L59 . L98 . O10 . O30 . O55

Introduction It has been widely acknowledged today that the creation and dissemination of knowledge over the past decade has been due to the rapid surge in information and * Simplice A. Asongu [email protected]; [email protected] Ndemaze Asongu [email protected]

1

African Governance and Development Institute, P.O. Box 8413, Yaoundé, Cameroon

2

Department of Economics, University of South Africa, P O Box: 392, UNISA, Pretoria 0003, South Africa

J Knowl Econ

communication technologies (ICTs) which have considerably mitigated the cost of communication and electronic networking. In essence, while the growing affordability of modern ICT has enhanced the efficient diffusion of existing knowledge, it has also facilitated the means by which new knowledge can be created to improve productivity and promote social, business and economic developments (Tchamyou 2016). This narrative is consistent with the ICT literature on social outcomes (Islama and Meadeb 2012; Amankwah-Amoah and Sarpong 2016; Brouwer and Brito 2012; AmankwahAmoah 2015, 2016; Mira and Dangersfield 2012; Asongu et al. 2017) in both developing (Gupta and Jain 2012; Sonne 2012) and developed (Thakar 2012) countries. However, a drawback to this trend is that countries that are not able to adapt and adjust to the importance of knowledge economy in twenty-first century development will be left-out in the global transition to knowledge-based economies. Unfortunately, this is the case with much of Africa because the continent’s overall knowledge index has dropped over the past decade (Tchamyou 2016). With the above background in mind, assessing linkages between the mobile phone, governance and technology-driven exports in sub-S