Poverty, ICT and Economic Growth in SADC Region: A Panel Cointegration Evaluation

Abstract

Although there is a wealth of evidence on the relationship between economic growth and poverty or poverty and information and communication technology (ICT), there are few studies on the interaction between the three factors. The triangle relationship between poverty, information and communication technology, and economic growth in SADC were investigated in this study from 2005 to 2019. The research looked at how ICT and economic growth impact poverty in SADC countries, using the instruments of the Mean-Group FMOLS, Mean-Group DOLS, and Robustness Mean-Group Estimators in achieving its major objective. The principal component analysis was employed in generating a single index value for ICT and the data were subjected to relevant econometric tests to achieve robust results. Findings showed that all the variables exhibited poverty-reducing effects in SADC except inflation. Results confirm the existence of the “leapfrogging” hypothesis for the region. It is necessary to strengthen existing bilateral links among member nations of the area to maintain the benefits of ICT’s poverty-reducing impacts, economic growth, financial development, and trade openness. As applicable in other advanced and some emerging economies, the digital competence of the region needs to be synchronized for effective ICT service delivery.