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...

Full description

Saved in:
Bibliographic Details
Main Authors: Kabiru Hannafi Ibrahim, Rossanto Dwi Handoyo, Wasiaturrahma Wasiaturrahma, Tamat Sarmidi
Format: Article
Language:English
Published: Taylor & Francis Group 2022-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2022.2143147
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849717355867799552
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