Unlocking trade locks in landlocked developing countries (LLDCs) in Africa: The role of digital infrastructure

Digital infrastructure has emerged as a crucial driver of trade, yet its potential to address the low trade volumes of African landlocked developing countries (LLDCs) remains underexplored. African LLDCs face unique challenges stemming from both traditional trade barriers and their geographic disadvantage, which limit their integration into global trade networks. This study investigates the role of digital infrastructure in enhancing trade flows in African LLDCs by augmenting the traditional gravity model with digital infrastructure variables. We employ different estimation techniques to analyse the panel data from 14 African LLDCs covering 2005–2022. The results reveal that the different measures of digital infrastructure indicators significantly promote trade, with varying magnitudes. The aggregate digital infrastructure index further reinforces the potential of digital infrastructure to mitigate geographical disadvantages and facilitate trade interactions. Further results show that the quadratic term of digital infrastructure is positive and significant, suggesting a nonlinear and convex relationship, and increasing returns to scale in digital infrastructure. The findings highlight the importance of prioritising investments in digital infrastructure, harmonising trade policies, and leveraging international partnerships. • The study investigates the role of digital infrastructure in enhancing trade flows in African LLDCs. • Employs different estimation techniques to analyse the panel data from 14 African LLDCs covering 2005–2022. • Digital infrastructure and its components significantly boost trade and mitigate the geographical disadvantages of LLDCs. • Further results confirm increasing returns to scale in digital infrastructure. • Highlights the importance of prioritising investments in digital infrastructure and leveraging international partnerships.