Services trade and infrastructure development: Evidence from African countries
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 tra...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2143147 |
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| author | Kabiru Hannafi Ibrahim Rossanto Dwi Handoyo Wasiaturrahma Wasiaturrahma Tamat Sarmidi |
| author_facet | Kabiru Hannafi Ibrahim Rossanto Dwi Handoyo Wasiaturrahma Wasiaturrahma Tamat Sarmidi |
| author_sort | Kabiru Hannafi Ibrahim |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-6bb11cf01a094207847c8abdb0cabfef |
| institution | DOAJ |
| issn | 2332-2039 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-6bb11cf01a094207847c8abdb0cabfef2025-08-20T03:12:41ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2143147Services trade and infrastructure development: Evidence from African countriesKabiru Hannafi Ibrahim0Rossanto Dwi Handoyo1Wasiaturrahma Wasiaturrahma2Tamat Sarmidi3Department of Economics, Federal University Birnin-Kebbi, Birnin-Kebbi, NigeriaDepartment of Economics, Universitas Airlangga, Surabaya, IndonesiaDepartment of Economics, Universitas Airlangga, Surabaya, IndonesiaSchool of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Bangi, MalaysiaUsing 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.https://www.tandfonline.com/doi/10.1080/23322039.2022.2143147Services tradeinfrastructure developmentdynamic system GMMAfrican countriesF10H54 |
| spellingShingle | Kabiru Hannafi Ibrahim Rossanto Dwi Handoyo Wasiaturrahma Wasiaturrahma Tamat Sarmidi Services trade and infrastructure development: Evidence from African countries Cogent Economics & Finance Services trade infrastructure development dynamic system GMM African countries F10 H54 |
| title | Services trade and infrastructure development: Evidence from African countries |
| title_full | Services trade and infrastructure development: Evidence from African countries |
| title_fullStr | Services trade and infrastructure development: Evidence from African countries |
| title_full_unstemmed | Services trade and infrastructure development: Evidence from African countries |
| title_short | Services trade and infrastructure development: Evidence from African countries |
| title_sort | services trade and infrastructure development evidence from african countries |
| topic | Services trade infrastructure development dynamic system GMM African countries F10 H54 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2143147 |
| work_keys_str_mv | AT kabiruhannafiibrahim servicestradeandinfrastructuredevelopmentevidencefromafricancountries AT rossantodwihandoyo servicestradeandinfrastructuredevelopmentevidencefromafricancountries AT wasiaturrahmawasiaturrahma servicestradeandinfrastructuredevelopmentevidencefromafricancountries AT tamatsarmidi servicestradeandinfrastructuredevelopmentevidencefromafricancountries |