THE EFFECT OF DIGITAL TRADE FACILITATION ON EXPORT PERFORMANCE AND FIRM PRODUCTIVITY

Abstract

Abstract This study examines the impact of digital trade facilitation on export performance and firm productivity in four African countries - Nigeria, Egypt, South Africa, and Kenya - over the period 2000–2023. Employing the Fixed Effects and Three-Stage Least Squares Econometric Models, the analysis delineates both the direct and indirect effects of digital trade facilitation on export performance and firm productivity. The findings reveal that, while improvements in digital trade facilitation directly boost export performance, initial adoption challenges and infrastructural limitations may temporarily constrain productivity enhancements. Importantly, gains in firm productivity are shown to significantly amplify export performance over time, underscoring a reinforcing relationship between digital integration and trade competitiveness. Amongst others, the study recommends strategic investments in digital infrastructure, capacity-building initiatives, and collaborative frameworks to harness the full potential of digital trade facilitation to promote enhanced competitiveness and economic resilience in emerging markets. JEL Classification: F14, L86, O47.