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Towards the Operationalization of the AfCFTA Trade in Services Protocol: Do FDI and ICT Enable Trade in Services for ECOWAS Countries?

Author

Listed:
  • Kwami Ossadzifo Wonyra

    (University of Kara, Togo)

  • Braima Luís Soares Cassama

    (West African Development Bank, Togo)

  • Kodjo Théodore Gnedeka

    (University of Lome, Togo)

Abstract

In January 2021, the AfCFTA entered its operational phase. This AfCFTA covers the liberalization of trade in services with a Protocol on Trade in Services. In this context, this paper examines the effects of FDI flows and ICT infrastructure on services exports, both globally and by sector in ECOWAS countries. We use panel data on the 15 countries for the period 1998 to 2020 and perform dynamic modeling using the LSDVC technique. The results reveal that the infrastructure ICT (internet and mobile telephony) does not directly affect services exports. However, overall, the interaction between ICT infrastructure and FDI positively and significantly influences services exports. The effects of the interaction between ICT and FDI have varying impacts on services exports across different sectors.

Suggested Citation

Handle: RePEc:epw:develo:v:3:y:2023:i:1:id:15195
DOI: 10.24018/ejdevelop.2023.3.1.195
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