Effects of Internet Adoption on International Trade: Evidence from Nigeria and Its Major Trading Partners

Abstract

The study investigated the effects of internet adoption on international trade among Nigeria and its major trading partner. The study adopted a gravity model and sourced data from world development indicators (WDI) database between 1960 to 2020. Empirical findings from the study reveal that with regards to trade volume and trade intensity, on the average, United states of America is Nigeria’s largest trading partner followed by India, France, United Kingdom and China. Furthermore, the study revealed that the effects of distance, language, colony and contagion on international trade were insignificant. A plausible explanation could be that internet adoption to a large extent has made the world a global village and brought global technological transformation that has permeated all sectors of the economy. The study further found out that the gross domestic product of Nigeria and those of its major five trading partners significantly influence total export and import of goods and services.

Received: 27 May 2023 / Accepted: 27 June 2023 / Published: 5 July 2023