Mobile Internet and Intra-Regional Trade Flows in West Africa

Abstract

Intra-regional trade within West Africa has attracted concerns over its flows and associated benefits. This paper examines the relationship between mobile internet and intra-regional trade flows for six West African countries due to their trade relation for the period 2000-2023. The countries include, Nigeria, Ghana, Coted’lvoire, Mali, Senegal and Benin. Trade data (exports and imports) was obtained from World Trade Integrated Solution. For other explanatory variables including GDP representing incomes in both exporting and importing, Distance, Proportion of individual using internet, inflation rate and population, data was obtained from the World Bank database. Export is employed as the dependent variable. While the theoretical framework relied on internetisation management theories, the gravity model estimation was employed in analysing the trade flows. The model is estimated using the Generalised Method of Moment because it utilises the moment conditions and instrumental variables to obtain consistent and efficient parameter estimates. Using sensitivity analysis, results show that incomes of both exporting and importing countries facilitated trade, distance retarded trade relation with inflation included. Mobile internet variable measured by the proportion of individual using internet facilitated exports flow in the region. It is important that West African governments further improve access to mobile internet with minimum costs. Road networks between countries should be put in good shape to facilitate easy mobility.