TY - JOUR
T1 - Services trade and infrastructure development
T2 - Evidence from African countries
AU - Ibrahim, Kabiru Hannafi
AU - Handoyo, Rossanto Dwi
AU - Wasiaturrahma, Wasiaturrahma
AU - Sarmidi, Tamat
N1 - Publisher Copyright:
© 2022 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license.
PY - 2022
Y1 - 2022
N2 - Using a dynamic system GMM estimate, this study analyzed the impact of services trade on the development of infrastructure in 38 African countries over the period 2000–2020. Telecommunications, trade/transport-related, and port infrastructures were modelled as the dependent variables on services trade openness. Other sets of control variables include real GDP, financial development, gross fixed capital formation, external debt, population density, urbanization, exchange rate, and services value-added. Our empirical strategy revealed that regardless of the infrastructure indicator used in the estimate, services trade, GDP, financial development, external debt, and services value-added significantly promote the development of infrastructure in the continent. Capital formation increases trade/transport-related and reduces port infrastructure while population density increases trade/transport-related and port infrastructure. The finding further indicates that urbanization increases telecommunications and reduces trade/transport-related infrastructure. The exchange rate reduces the development of telecommunications and port infrastructure. The findings are therefore vital to present policies related to services trade and infrastructure development in African countries.
AB - Using a dynamic system GMM estimate, this study analyzed the impact of services trade on the development of infrastructure in 38 African countries over the period 2000–2020. Telecommunications, trade/transport-related, and port infrastructures were modelled as the dependent variables on services trade openness. Other sets of control variables include real GDP, financial development, gross fixed capital formation, external debt, population density, urbanization, exchange rate, and services value-added. Our empirical strategy revealed that regardless of the infrastructure indicator used in the estimate, services trade, GDP, financial development, external debt, and services value-added significantly promote the development of infrastructure in the continent. Capital formation increases trade/transport-related and reduces port infrastructure while population density increases trade/transport-related and port infrastructure. The finding further indicates that urbanization increases telecommunications and reduces trade/transport-related infrastructure. The exchange rate reduces the development of telecommunications and port infrastructure. The findings are therefore vital to present policies related to services trade and infrastructure development in African countries.
KW - African countries
KW - Services trade
KW - dynamic system GMM
KW - infrastructure development
UR - http://www.scopus.com/inward/record.url?scp=85142302402&partnerID=8YFLogxK
U2 - 10.1080/23322039.2022.2143147
DO - 10.1080/23322039.2022.2143147
M3 - Article
AN - SCOPUS:85142302402
SN - 2332-2039
VL - 10
JO - Cogent Economics and Finance
JF - Cogent Economics and Finance
IS - 1
M1 - 2143147
ER -