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    The Impact of ICT Use on Trade Openness in Sub-Saharan African Countries

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    RPJ 24 VOL 2-Compiled_Printing format_FINAL.doc-42-54.pdf (354.6Kb)
    Date
    2022-12
    Author
    Ngowi, Nicholaus
    Rwezaula, Anicet
    Awadhi, Mohamed
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    Abstract
    This study uses panel data for 48 sub-Sahara Africa countries, ranging from the year 2000 to 2020, to empirically examine the impact of Information and Communication Technology (ICT) use and adoption (internet use) on trade openness, employing quantile regression analysis. The study controlled Foreign Direct Investment (FDI), access to finance, capital formation and inflation rate in the quantile regression. The study findings demonstrate that internet use (i.e., ICT) has a positive and statistically significant impact on trade openness in sub-Saharan African countries, as evidenced in the majority of quantiles (30th, 40th, 50th, 60th, 70th, 80th, and 90th). This implies that an increase in internet use has resulted to positive trade openness in the region. Furthermore, results of the study also reveal that capital formation and Foreign Direct Investment (FDI) have positive statistically significant impact on trade openness at all quantiles while access to finance (domestic credit to private sector) and inflation has heterogeneous effect on trade openness in sub-Saharan African countries. We recommend sub-Saharan African countries to increase internet users and penetration to influence the use of ICT technologies (electronic mail, telephones) on trade activities.
    URI
    https://repository.irdp.ac.tz/handle/123456789/400
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    • Volume 24 Issue 2 December 2022 [9]

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