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<p>In this study, we examine the role of Information and Communication Technology (ICT) in the nexus between trade openness and sectoral value added in Sub-Saharan Africa (SSA). Panel data for 41 economies in SSA covering between 1996 and 2024 were analysed via the fixed effect based on Driscoll and Kraay robust standard errors, System GMM and dynamic panel threshold regression. The following findings are documented. First, ICT promotes economic growth, but heterogeneous across the respective sectorial value added. In specific, ICT advances growth in manufacturing and services sectoral value-added, but abates growth in agriculture sectoral value-added in SSA. Furthermore, trade openness promotes manufacturing and services sectoral value-added, but decreases growth in agriculture sectoral value-added in SSA. Third, ICT enhances the growth effect of trade on sectoral value-added in SSA. Finally, the threshold analysis reveals that ICT initially imposes cost before benefits emerge in aggregate economic growth, manufacturing and the services sectoral value-added at the threshold points of 27.10%, 27.61% and 20.60% respectively, suggesting a U-shaped relationship. The novelty of this study is the consideration of sectoral analysis which has helped in identifying sectorial value-added with growth potentials from the emergence of ICT revolution in SSA. This motivates policy framework necessary to boost economic development through international trade and ICT across the varying economic sectors in SSA. </p>

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Examining the trade openness-sectoral growth nexus in Sub-Saharan Africa. does ict matter? a static and dynamic analysis

  • 期刊论文

  • 发表日期：

    2026年3月12日

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  • Temitope Wasiu Adamson,
  • Folorunsho M. Ajide,
  • M. O. Fatai,
  • Olanike Idowu Ajayi

摘要

In this study, we examine the role of Information and Communication Technology (ICT) in the nexus between trade openness and sectoral value added in Sub-Saharan Africa (SSA). Panel data for 41 economies in SSA covering between 1996 and 2024 were analysed via the fixed effect based on Driscoll and Kraay robust standard errors, System GMM and dynamic panel threshold regression. The following findings are documented. First, ICT promotes economic growth, but heterogeneous across the respective sectorial value added. In specific, ICT advances growth in manufacturing and services sectoral value-added, but abates growth in agriculture sectoral value-added in SSA. Furthermore, trade openness promotes manufacturing and services sectoral value-added, but decreases growth in agriculture sectoral value-added in SSA. Third, ICT enhances the growth effect of trade on sectoral value-added in SSA. Finally, the threshold analysis reveals that ICT initially imposes cost before benefits emerge in aggregate economic growth, manufacturing and the services sectoral value-added at the threshold points of 27.10%, 27.61% and 20.60% respectively, suggesting a U-shaped relationship. The novelty of this study is the consideration of sectoral analysis which has helped in identifying sectorial value-added with growth potentials from the emergence of ICT revolution in SSA. This motivates policy framework necessary to boost economic development through international trade and ICT across the varying economic sectors in SSA.