Name of the Asset | Digital Pathways to Global Markets: The Influence of ICTs on Value Chain Participation
Type of Asset | Research
Date | January 2026
DOI | 10.69814/wp/2025109
SUMMARY
Although scholars agree that the rise of global value chains appears to have happened alongside the ICT revolution, the empirical evidence documenting the nexus ICTs- participation in the GVC is still very scant. So, the objective of this study is twofold: (i) to examine the effect of ICT on participation in GVC, and (ii) to explore the channels through which ICT influences the integration into the GVC. Data are collected from the WDI of the World Bank and the UNCTAD-EROA for a sample of 217 countries covering the 1996 to 2018 period. A dynamic linear model is estimated using the system GMM estimator. The results strongly show that a greater internet penetration rate and mobile telephone use contribute to more intensive participation in GVC in both Africa and the World. Then, the net impacts computed from the interaction GMM approach show that both internet penetration and mobile phone complements trade to intensify GVC participation in Africa on proportions above the World average. The study calls for a more tailored digital-industrial policy approach that links technology, trade, and investment to foster inclusive GVC participation.
AUTHOR | Yaniick Fosso Djoumessi
COUNTRY AND/OR REGION | Africa, Global
PROGRAMME | Global Development Conference 2025: Call for Papers
