Agricultural raw materials, information and communications technology and service exports on economic growth in twenty Sub-Saharan countries: A panel vector error correction model approach

Abstract

The economies of Sub-Saharan Africa are experiencing significant growth due to increasing populations, rising incomes, and urbanization. However, these factors also bring challenges to trade stability. This study analyses the impact and causality of agricultural  raw materials, information and communications technology, and service exports on economic growth in twenty selected countries in the  region. The research utilised the Panel Vector Error Correction Model approach and the Canning and Pedroni causality test. The analysis  focused on stationarity, longrun and short-term dynamics, and the impact of export variables on economic growth. The results of panel  unit root and cointegration tests revealed that all variables are non-stationary at level but became stationary after the first differencing,  indicating a long-run relationship. The study conclude and recommend that governments in the region develop and promote efficient  policies and institutional frameworks to facilitate technological transformation, which could drive non-oil exports, fuel economic growth,  and enhance expertise within Sub-Saharan African economies for greater efficiency.