ICT, governance and inequality in Africa

Abstract

We examine the direct effect of Information and Communication Technologies (ICTs) on inequality and investigate whether the ICT and inequality relationships can be reinforced by governance indicators of democracy, regulatory quality, rule of law and political stability. Using the panel dataset of 46 African countries over the period 1984–2018 and dynamic two-step system generalized method of moment estimator, we found that ICT measures of internet, fixed broadband and mobile cellular subscription directly reduce inequality, and good governance indicators can reinforce the ICT and inequality links. We execute a threshold analysis that illustrates the crucial role of democracy, regulatory quality, rule of law and political stability in facilitating the ICT and inequality relationships in Africa.