The role of ICTs in bilateral trade in sub-Saharan Africa: A gravity model analysis

Eudoxie Bessan and Christian Ayedoun

Working Papers from African Economic Research Consortium

Abstract: This paper aims to analyze the impact of information and communication technologies (ICTs) on bilateral trade flows among sub-Saharan African (SSA) countries. Utilizing an extended ICT gravity model, the study explores how key ICT indicators influence exports, imports, and trade in manufactured goods. The analysis covers a sample of 35 countries over the period from 2010 to 2019. To address potential over-representation of zero trade flows, the Poisson Pseudo-Maximum Likelihood (PPML) estimator is employed. The findings reveal that ICT development, particularly access to mobile telephony, mitigates the effect of distance on trade by facilitating intra-African trade flows. However, the limited availability of ICT infrastructure, especially restricted Internet access, means that physical distance remains a significant barrier to trade. Based on these insights, the study recommends strategic investments in ICT infrastructure and innovation, aimed at reducing transaction costs and improving ICT accessibility. Enhanced regional economic integration is also suggested as a pathway to facilitate these improvements and strengthen trade networks among SSA countries.

Date: 2025
Note: African Economic Research Consortium
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