The influence of information and communication technology on trade in developing countries and partners

The widespread use of information and communication technologies (ICT) is evidenced by various devices, systems, and applications that enable organizations and individuals to interact with one another and the digital world. In this study, a comparative analysis framework was employed to evaluate different panel data techniques for the period 1990–2020. The aim is to ensure the robustness of the results and effectively assess ICT modeling in an economic context. The panel techniques found to be relevant and utilized in this study include pooled ordinary least squares (OLS), the fixed effects model (FEM), the random effects model (REM), two-stage least squares (2SLS), fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), and robust least squares (ROBUSTLS). The sample comprises 12 trading partners in Pakistan, including both developed and developing economies. The results were consistent and robust across all the techniques employed. Based on these findings, various policy implications can be derived, such as the need for Pakistan to form strategic partnerships with both developed and developing nations to increase the trade component of ICT for rapid growth, because enhancing the ICT-based domestic industry will provide more employment and production opportunities.This study emphasizes the essential role of information and communication technologies (ICT) in fostering international trade, with a particular focus on Pakistan’s interactions with its trading partners. Using a comparative analysis of various panel data techniques over three decades, the research not only verifies the positive impact of ICT advancement on both exports and imports, but also recommends strategic collaborations with technologically advanced nations to enhance Pakistan’s trade dynamics. These findings are vital for policymakers, as they suggest that integrating ICT into trade policies can significantly promote economic growth, sustainability, and global competitiveness. By demonstrating the consistent and robust effect of ICT on trade volumes, this study underscores the importance of Pakistan investing in ICT infrastructure and innovation, promoting a digital economy that can lead to increased employment, production opportunities, and sustainable economic practices in line with the Sustainable Development Goals (SDGs).