The Impact of Information and Communications Technology Infrastructure and Complementary Factors on Intra-African Trade

Abstract

Trade is one of the cornerstones of socio-economic development for Africa. Intra-continental trade stimulates productive capacity and competitiveness in nations through exposing domestic industries to competition. The purpose of this study was to investigate how information and communications technology (ICT) infrastructure impacts on intra-African trade, taking into account other relevant factors that also influence trade such as Institutional Quality and Educational Attainment. Archival data about Telecommunications Infrastructure (a key indicator of ICT infrastructure), Institutional Quality and Educational Attainment and Trade Flows (Export and Import) from 28 African countries were used as empirical evidence. The research employed structural equation modeling with partial least squares to analyze data. The empirical analysis shows that the Telecommunications Infrastructure has a major impact on intra-African trade. Interacting factors such as Institutional Quality and Educational Attainment also play a role in influencing intra-African trade.