Speaker
Description
Yusuf, H. A.
University of Ilorin, Department of Economics, Faculty of Social Sciences,.
agboolayusuf2007@gmail.com
Track: Inclusion, Equity and Digital Access
THE IMPACT OF E-COMMERCE AND DIGITIZATION ON INTERNATIONAL TRADE IN SUB-SAHARAN AFRICA
Abstract
This research investigates the impact of e-commerce and digitization on international trade in Sub-Saharan Africa. It focused on export and import activities from 2000 to 2022. The study aims to assess the overall effect of e-commerce and digitization on international trade, specifically analyze their impact on exports, and examine their influence on imports within the region. The study employed the System Generalized Method of Moments (GMM) for econometric analysis of data sourced from the World Bank's World Development Indicators for 43 countries in Sub-Saharan Africa to ensure robust results. Innovation, trade openness, economic growth, FDI, human capital development, natural resources availability, and exchange rate, were employed as control variables to enhance the robustness of the specified models. The findings reveal that e-commerce measured with ICT goods imported has a positive and significant effect on both exports and imports, while digital technology measured with internet usage and mobile cellular subscriptions was found to be unrelated with either exports or imports. However, the study identified challenges such as infrastructure gaps, uneven technological adoption, and regulatory inconsistencies, which limit the potential benefits of digitized trade. The research concludes by recommending policy strategies that focus on enhancing digital infrastructure, harmonizing regulations, and fostering e-commerce adoption to further boost international trade in the region.