The impacts of telecommunications infrastructure and institutional quality on trade efficiency in Africa

Abstract

One of the dominant issues for Information Systems (IS) researchers in developing countries is to determine the impact of Information Communication Technology (ICT) infrastructure expansion on socio-economic development. Generating sustained socio-economic development in Africa depends largely on the ability of nations to make profitable investments and accumulate capital, which could be achieved through efficient ICTenabled trade flows. Trade supports employment creation and improves national income levels, revenue generation, consumer price reductions and government spending. It is a key driver of African poverty alleviation, growth, economic maturity and human development. Previous research, in particular Bankole et al. [(2013a). The impact of information and communications technology infrastructure and complementary factors on intra-African trade. Information Technology for Development] identified the significant and positive effect of telecommunication infrastructure and institutional quality (IQ) on intra-African trade flows. As part of the ongoing research discourse on ICT for Development, the current article explores the impacts of telecommunications infrastructure and IQ on trade efficiency in Africa, using archival data from 28 African countries. We employed partial least squares analysis, data envelopment analysis and regression splines to analyze data. Our results suggest that IQ coupled with telecommunication infrastructure enhance efficiencies in intra-African trade flows.