Impact of Financial Inclusion and Intra-African Trade on Export Diversification in Sub-Saharan Africa

Abstract

This paper seeks to ascertain how financial inclusion and intra-African trade affect export diversification performance in sub-Saharan Africa. The data, secondary in nature, are annual and cover a 16-year period for 23 countries. The model used in the analysis is an extension of Gnangnon (2021). The estimations are done using the method of Driscoll and Kraay (1998). The results indicate that financial inclusion and intra-African trade are significant in exporting diversification in Sub-Saharan Africa economies when considered individually. Moreover, the interaction between financial inclusion and intra-Africa exports significantly influences export diversification. Based on these findings, this study thus advocates that sub-Saharan African economies improve financial inclusion and intra-African trade.