Technology, Poverty, and Education within the BRICS’ Context

Abstract

Purpose: The study investigated the impact of information and communication technology (ICT) on poverty and if education enhanced the influence of ICT in BRICS (Brazil, Russia, India, China, South Africa). Design/Approach/Methodology: Fixed effects, pooled ordinary least squares (OLS) and panel fully modified ordinary least squares (FMOLS) were used with data ranging from 1994 to 2015. Findings: ICT was found to have alleviated poverty only under the fixed effects approach whilst education had a reduction effect on poverty across all the three econometric estimation techniques used. Although not statistically significant, ICT and the interaction term were found to have reduced poverty under both the pooled OLS and FMOLS. Moreover, consistent with others education was found to be important in enhancing the impact of ICT on poverty alleviation under the fixed effects in BRICS nations. Practical Implication: BRICS nations are therefore urged to invest more in strengthening education and ICT systems in order to disentangle the people from the vicious cycle of poverty. Originality/Value: The study is unique because to the best of the authors' knowledge, it is the first paper to explore the effect of the complementarity between ICT and education on poverty alleviation. The paper is also unique in the sense that it considered the dynamic characteristics of poverty data, commonly referred to as the vicious cycle of poverty.