ICT and trade competitiveness in West Africa: the mediating role of revealed comparative advantage in the non-alcoholic beverage sector

Abstract This study examines the impact of information and communication technology (ICT) and revealed comparative advantage (RCA) on non-alcoholic trade in West Africa. The study considered data from 1995 to 2023 for 15 West African countries. It utilised the pooled mean group estimator, capturing ICT from three standpoints: internet penetration, mobile phone subscriptions and fixed telephone subscriptions. The findings indicate that internet penetration and mobile phone subscriptions lead to a significant rise in non-alcoholic beverage exports in West Africa, with increases of 27.3% and 37.3%, respectively, while fixed telephone subscriptions result in a 17.9% decrease in exports. Internet penetration increases non-alcoholic beverage imports by 27.6%. The interaction between ICT variables and RCA enhances export performance, with the strongest impact observed with internet penetration, yielding increases of up to 88.9% in exports when combined with RCA. The results suggest that enhancing internet and mobile connectivity can significantly boost non-alcoholic beverage exports in West Africa. Thus, it is advisable to prioritise ICT infrastructure development and support initiatives that leverage technology to improve competitiveness and trade efficiency in the sector.