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Manufacturing Export and ICT Infrastructure in West Africa: Investigating the Roles of Economic and Political Institutions

Author

Listed:
  • Ibukun Beecroft

    (CEPDeR, Covenant University, Ota, Nigeria)

  • Evans S. Osabuohien

    (CEPDeR, Covenant University, Ota, Nigeria)

  • Uchenna R. Efobi

    (CEPDeR, Covenant University, Ota, Nigeria)

  • Isaiah Olurinola

    (Covenant University, Ota, Ogun State, Nigeria)

  • Romanus A. Osabohien

    (CEPDeR, Covenant University, Ota, Nigeria)

Abstract

Investment in ICT infrastructure development is crucial to international trade through its provision of reliable interconnectedness via communication. This can be augmented via institutional intervention, which addresses opportunistic or rent-seeking behaviours of ICT infrastructure providers and reduces operational costs, among others. However, ICT infrastructural provision in West Africa remains low, necessitating the current drive by the regional economic community (ECOWAS) to make some advancement in this regard for enhanced trade outcomes of members. With the aim of unbundling institutional framework in the infrastructure-export nexus, this study empirically examines the relationship between manufacturing export and ICT infrastructure and articulates how economic and political institutions influence such interaction. Focusing on 14 West African countries, the study uses the Systems Generalised Method of Moments (SGMM) technique to address possible issues of endogeneity and reverse causality. The results reveal that in the face of improved economic and political institutions, particularly those related to enforcement of contracts, the influence of ICT infrastructure in strengthening the exporting capacity from the manufacturing sector is greater. In addition, some measures of economic and political institutions matter more than others. The study recommends that ECOWAS countries promote better institutional quality, particularly in terms of transparency, accountability, corruption control, regulatory quality and the rule of law.

Suggested Citation

  • Ibukun Beecroft & Evans S. Osabuohien & Uchenna R. Efobi & Isaiah Olurinola & Romanus A. Osabohien, 2019. "Manufacturing Export and ICT Infrastructure in West Africa: Investigating the Roles of Economic and Political Institutions," Working Papers 19/098, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:19/098
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    Cited by:

    1. Isaiah Olurinola & Romanus Osabohien & Bosede Ngozi Adeleye & Ifeoluwa Ogunrinola & Jacob Isaac Omosimua & Tyrone De Alwis, 2021. "Digitalization and Innovation in Nigerian Firms," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(3), pages 263-277, March.
    2. Muhammad Khalid Anser & Romanus Osabohien & Olawale Olonade & Alhassan Abdulwakeel Karakara & Idowu Bashiru Olalekan & Junaid Ashraf & Angie Igbinoba, 2021. "Impact of ICT Adoption and Governance Interaction on Food Security in West Africa," Sustainability, MDPI, vol. 13(10), pages 1-11, May.
    3. Gupta, Parul & Chauhan, Sumedha, 2021. "Firm capabilities and export performance of small firms: A meta-analytical review," European Management Journal, Elsevier, vol. 39(5), pages 558-576.

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    More about this item

    Keywords

    Dynamic panel data; Infrastructural provision; Infrastructural development; Institutional framework; Institutional quality; Manufacturing export; Manufacturing value added;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

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