The importance of Information and Communications Technology in Achieving African Economic Integration

Abstract

Abstract: The present study investigated and tested the influences of Information and Communications Technology (ICT) development on intra-African trade using a panel dataset for 41 African countries during the period 2002–2016. To the best of the authors’ knowledge, this is the first empirical study in the Africa continent that investigates the impact of ICT development on Intra-African trade using the Information and Communications Technology Development Index as a comprehensive measurement tool. The Pedroni cointegration tests verified a long-run relationship between the mentioned variables. The results of the Fully Modified Ordinary Least Squares (FMOLS) technique suggested that ICT development plays a marginal impact on intra-African trade, an impact that is significant at 1%. Overall, the results implied that one of the key channels through which the goal towards Continental Free Trade Area (CFTA) is through promoting and investing more in the ICT sector. Thus, governments and development partners should work with other stakeholders progressively to build ICT-enabled trade facilitation in Africa. Keywords: Information and Communications Technology, Intra-Trade, Africa.