Nnanna P. Azu, Dambo Hussaini, Kate O. Chima and Hassan P. Abdullahi
This study examined the influence of information and communication technology (ICT) on Nigeria's trade in sectors. Specifically, the research evaluated the effects of internet…
Abstract
Purpose
This study examined the influence of information and communication technology (ICT) on Nigeria's trade in sectors. Specifically, the research evaluated the effects of internet penetration, mobile phone subscriptions and fixed telephone subscriptions on exports and imports.
Design/methodology/approach
The study considered data from 1995 to 2022, highlighting ten trade sectors per standard international trade classification (SITC) single digit. It utilised the panel auto-regressive distributed lag (ARDL) with a preference for a pooled mean group (PMG) estimator.
Findings
The study finds that, in the short run, increases in internet penetration, mobile phone subscriptions and fixed telephone subscriptions significantly decrease export levels in Nigeria. Nonetheless, ICT advancements, particularly in mobile and fixed telephone subscriptions, significantly boost import activities by 17.9 and 41.5% in the long run, highlighting their positive impact on trade dynamics. In the long run, mobile telephone subscriptions substantially negatively affect exports. In contrast, internet penetration and fixed telephone subscriptions show no significant impact, indicating differing influences of ICT components on trade over time.
Practical implications
The study underscored the need to prioritise enhancing ICT infrastructure to boost export growth, especially in sectors identified under the SITC framework. Strategies should be developed to mitigate the negative impacts associated with ICT advancements.
Originality/value
The study used the SITC framework, which presents different export and import sectors. It offers a distinctive examination of the short- and long-term effects of ICT on Nigeria's trade sectors. It also provided valuable insights into the impact of mobile and internet technologies on exports and imports, highlighting sector-specific effects and the need for strategic resource allocation.
Nnanna P. Azu, Samuel O. Adekalu, Yusuf Isa and Joshua O. Chiadikobi
This study aims to assess how South African membership to the Brazil, Russia, India, China and South Africa (BRICS) has influenced its traded sector. It also evaluated information…
Abstract
Purpose
This study aims to assess how South African membership to the Brazil, Russia, India, China and South Africa (BRICS) has influenced its traded sector. It also evaluated information and communication technology (ICT) as an instrument for enhancing bilateral trade.
Design/methodology/approach
ICT was captured from three perspectives: mobile technology, internet usage and fixed telephones. It was integrated into an augmented gravity equation as a trade cost. The study covered 27 years and 181 South African trading partners. Estimation was done using the Poisson pseudo maximum likelihood estimation technique and the implementation of exporter-year and importer-year fixed effects.
Findings
It was revealed that mobile phone and fixed telephone subscriptions improve import and export by 4.66% and 1.79%, respectively, while the internet penetration rate negates export and import by 13.4% and 5.89%, respectively. However, it further demonstrates that the internet penetration rate and fixed telephone subscription reduced the negative impact of distance by 7.26% and 1.15% for export. ICT performed better when South Africa only traded with the BRICS countries. The report also shows an encouraging BRICS effect on South African bilateral trade with the bloc.
Practical implications
The study highlights that BRICS membership significantly boosts South Africa’s bilateral trade, which encourages new African memberships, while also emphasising the role of ICT in mitigating the negative impact of distance. Policymakers should enhance mobile phone and fixed telephone infrastructures to improve imports and exports, respectively, and strategically manage internet penetration to maximise the benefits of BRICS economic cooperation.
Originality/value
The study evaluated the influence of South Africa’s BRICS membership and how ICT variables interact with distance to mitigate its effects on trade. This provides a nuanced understanding of ICT’s unique impact on South Africa’s bilateral trade, offering valuable insights for policymakers to enhance trade performance and leverage BRICS economic cooperation effectively.