Abstract:
ABSTRACT
This article investigates the effect of digitalization on bilateral trade in the Economic
Community of West African States (ECOWAS). We estimate the augmented gravity
model to capture the effect of digitalization on bilateral trade using the POLS, GLS, and
PPML estimators over 2000 to 2018. We find a significant positive effect of digitalization
on bilateral trade for the ECOWAS region. The policy implication of this article is that
bilateral trade in the region depends on digitalization. Therefore, economic agents’
efforts in the ECOWAS region should aim at policies that promote digitalization to
enhance bilateral trade.
KEYWORDS:
Bilateral Trade
Ecowas
Digitalization
Gravity
Pooled OLS
GLS & PPML
