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Does ICTs decrease the spread of informal economy in Africa?
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DOI：10.1016/j.telpol.2022.102485.png)
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This paper assesses the effect of information and communication technologies (ICTs) on the informal economy. We applied the Generalized Method of Moments (GMM) on a sample of 45 African countries from 2000 to 2017. According to the findings, the use of ICTs (mobile phone and internet) decreases the spread of the informal economy in Africa. These results are robust to a battery of robustness checks. Furthermore, the results of the mediation analysis show that the effect of ICTs on the informal economy is mediated by financial development, human capital and control of corruption. From a policy perspective, we suggest a quantitative and qualitative consolidation of technological infrastructures, for a sustainable mitigation of the rise of informal sector in Africa.
Keyword:
ICTs
Informal economy
Africa
GMM
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