ICT investments, human capital development and institutions in ECOWAS

Abstract

The study explores the linkage between the investment in information and telecommunication technology (ICT) and human capital development on economic transformation in Economic Communities of West African States (ECOWAS). It further examines how investment in ICT and human capital development can transform the economies of ECOWAS members. This study engaged the generalised method of moments (GMM) in achieving its objective. The findings, among others, showed that investment in ICT did not have a statistically significant relationship with human development. Factors responsible for the non-significant impact of investment in telecommunications on human development could be attributed to the relatively low investment in telecommunications accompanied with high cost of acquisition of the technology in ECOWAS and harsh policy environment. Thus, policies such as the enforcement of good institutions, stabilisation of the political and economic variables in ECOWAS economies will encourage investment in telecommunications, which will enhance ICT adoption and human development.