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Africa Economic Integration: Is the Information and Communications Technology Infrastructure Matter?


Theme

Integrating infrastructure and facilitating movement of people, goods and services


Authors

  • Atif Awad

Download paper (392 kB)


Abstract

The present study investigated and tested the influences of Information and Communications Technology (ICT) develoemnt on intra-Africa trade using a panel dataset for 41 African countries for the period 2002–2016.  To the best of the authors’ knowledge, this is the first empirical study in the Africa continent that investigate the impact of ICT development on intra -Africa trade using comprehensive measurement that is Information and Communication Technology Development Index. A long-run relationship between the mentioned variables was verified by the Pedroni cointegration tests.  The FMOLS method suggested that despite the ICT development play marginal impact in explaining intra-Africa trade in the long run, but this impact is significant at 1%.  The panel causality test detects existence of unidirectional relationship running from intra-Trade to ICT development. Overall the results implied that one of key channel through which the goal towards Continental Free Trade Area (CFTA) is through promoting and invest more in ICT sector. Thus, governments and development partners should work with other stakeholders progressively to build ICT-enabled trade facilitation in Africa. 

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