Central bank independence and export intensity: Do interactive effects of digitalisation and governance quality matter in Sub -Saharan Africa?

This study investigates whether the relationship between central bank independence (CBI) and export intensity in Sub Saharan Africa depends on digitalisation and governance quality. The analysis applies a dynamic panel framework that accounts for cross sectional dependence, slope heterogeneity, and endogeneity, using data from 22 countries between 1995 and 2023. The results show that central bank independence reveals a significan positive relationship with export intensity, although its magnitude varies across specifications. Digitalisation modifies this relationship, though the direction of the modifying pattern depends on the proxy and estimation technique. Governance quality indicates a significant positive direct relationship with export intensity, and its orthogonalised interaction with central bank independence suggests that the marginal contribution of monetary independence is lower where institutional frameworks are already robust. Human capital remains significantly and positively related to export intensity. These findings demonstrate that institutional credibility is context dependent. Policymakers should integrate monetary reform with digital infrastructure investment and governance strengthening, while recognising that the moderating role of digitalisation is proxy and specification sensitive.