we do not capture potentially important feedbacks between markets. For example, imports of digital inputs may have important spillovers to other markets, e.g. through their effects on firm performance or distribution networks, which can increase income and further increase digital goods imports. We also abstract from other indirect channels by which tariff reductions and other forms of economic integration may impact firm decisions to use imported inputs. In particular, enhanced market access within the AfCFTA region might facilitate firm growth through exports, and thereby make it more likely that firms find it profitable to pay the fixed costs associated with the adoption of digital technologies, in line with the findings of Bustos (2011). We leave for further research a precise quantification of these indirect effects in the African context.

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