The criticality of ICT-trade nexus on economic and inclusive growth.

Abstract

© 2020 Commonwealth Secretariat. This paper contributes to the ICT-growth and trade-growth literature by investigating the ICT-trade nexus on economic and inclusive growth. That is, does ICT adoption enhance or distort the impact of trade on growth? With data on 53 African countries from 2005 to 2015 using mobile phones and fixed telephone subscriptions as indicators of ICT, findings provide evidence that (1) trade is a significant and positive predictor of growth, (2) the impact of trade on growth differs significantly across Africa’s sub-regions, (3) the effect of ICT adoption differs significantly across sub-regions, (4) ICT innovation enhances the impact of trade on growth, and (5) the ICT-trade nexus differ significantly across sub-regions. The study submits that these variables are critical drivers of economic and inclusive growth in Africa. However, the lack of consistency of the results across the sub-regions suggests that the level of ICT is still undeveloped. Policy implications are discussed.