Template-type: ReDIF-Paper 1.0
Author-Name: Mupela, Evans
Author-Email: emupela@wsu.ac.za
Author-Workplace-Name: WSU, UNU-MERIT/MGSoG
Author-Name: Szirmai, Adam
Author-Email: szirmai@merit.unu.edu
Author-Workplace-Name: UNU-MERIT/MGSoG
Title: Communication costs and trade in Sub-Saharan Africa
Abstract: This paper investigates the effects of connectivity charges 
	 (communication costs) on bilateral exports in Sub Saharan Africa (SSA). 
	 Data from 19 exporter countries was used together with communication 
	 costs data in a gravity model of trade setup. The export data derive 
	 from the IMF Direction of Trade and the COMTRADE databases, while the 
	 communication cost data was collated from a variety of sources including 
	 direct contact with service providers. We find that communication cost 
	 is an important factor in bilateral trade in the region. Communications 
	 have a significant negative effect on export intensity. The study also 
	 reveals that countries with high communication costs generally have 
	 lower export intensity than countries with low communication costs. The 
	 results suggest that investment in ICT infrastructure that brings down 
	 international communication costs will have a positive effect on 
	 regional trade in the long run.
Classification-JEL: O25, O41, O43, O47, F15, F43
Keywords: Trade, gravity model, communication cost, connectivity, export
Series: UNU-MERIT Working Papers
Creation-Date: 2012
Number: 2012-060
File-URL: https://unu-merit.nl/publications/wppdf/2012/wp2012-060.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2012060