Impact of E-commerce taxation on cross-border online transactions: Empirical evidence from African countries

This study examines the impact of the digital tax on cross-border online transactions in African countries, while presenting the role of internet penetration and landlockedness. From an econometric estimate based on the Heckman method on data from cross-border online transactions, the results reveal that the digital tax has a negative and significant effect on cross-border online transactions, while internet penetration exerts a positive and significant effect on e-commerce. The results also indicate that isolation has a positive and significant effect, suggesting that online commerce can reduce certain geographic constraints. The study deduces that African public policies should favor access to digital technology which is considered the main driver of a transformation of the African economy and cross-border logistics, while avoiding overly restrictive taxation which acts as an obstacle to development of electronic commerce.