Evaluating the effect of ICT on trade and economic growth from the perspective of Eastern African belt and road countries

Abstract

ABSTRACT This study employs the new panel data structural gravity approach to investigate the overarching effect of ICT on bilateral trade flows and economic growth, by using a panel of 65 Belt and Road initiative (BRI) countries. This comprises of twenty-seven (27) sub-Saharan African countries from the period 2000 to 2019. The empirical results indicate that greater access to ICT deepens bilateral export and growth among participating countries. Essentially, the results demonstrate a positive correlation between ICT growth and economic development in the BRI countries. Overall, the findings reveal that ICT and infrastructural growth have provided the East African Community (EAC) a lot of opportunities to boost intra-regional trade. However, the BRI countries need to invest more heavily in ICT infrastructure to foster a continuous and sustainable economic development paradigm within the enclave.