Information technology and financial development for achieving sustainable development goals

Abstract

The present study aims to answer the question of the effectiveness of information and communication technologies (ICT) and financial development in achieving sustainable development goals (SDGs). Specifically, it examines the joint effects of ICT (mobile phone and internet use) and eight financial sector development indicators on achieving economic, social, and environmental sustainability in light of the SDGs using data from 48 Sub-Saharan African countries. Using the system Generalized Method of Moments, we found that (i) the four dimensions of financial development and both indicators of ICT increase economic, social, and environmental sustainability, (ii) increasing the access to mobile phones and the use of Internet contributes to the development of the financial sector, (iii) the contribution of financial sector development on the achievement of the SDGs increases with the presence of ICT. The study calls on policymakers to consider the diffusion of ICT and the advantages they offer in elaborating measures for achieving sustainable development goals.