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The issue of how financial development affects international trade has gained much attention in the literature, both theoretical and empirical, without investigating the various transmission channels of financial development on international trade. Significantly, how the digital economy modulates the effects of financial development on trade remains unexplored. Our study addresses these research gaps using panel data from 47 African economies spanning 1990 to 2019. Our findings based on the dynamic system GMM approach show that the direct impacts of financial development and the digital economy have been crucial in driving international trade in Africa in the short and long runs. Second, in the short and long runs, the digital economy serves as a vital channel through which financial development has the most significant impact on trade in Africa. Third, the robustness checks by excluding countries endowed with natural resources in Africa provide robust evidence that digital technology and finance matter for trade. Further, the study discloses an important novelty in that the marginal effects on trade increase when financial development in Africa interacts with the digital economy. In light of these findings, we conclude that policy reforms should focus on policies that encourage the development of the digital economy and its use in the financial sector in Africa. • The influences of the new financial development index and digital economy on international trade. • A sample of 47 African countries from 1990 to 2019. • The long-run and short-run impact of financial development and digital economy on international trade. • The interactive effects of finance and digitalization positively influence trade in Africa. [ABSTRACT FROM AUTHOR]

This study empirically examined the relationship between energy-focused climate policies (EFC) and trade (TR) in 65 of the world's top renewable energy generation countries using data ranging from 1995 to 2022. The cross-sectional augmented distributed lags (CS-DL) results revealed positive effects of EFC on both employment and economic growth. It also proves the positive effects of both employment and economic growth on trade. The Dumitrescu Hurlin test confirmed the feedback causality within indirect effects. Structural Equation Modeling (SEM) allowed us to show that employment and economic growth mediate the EFC and TR. All the SEM results were robust due to the positive heterogeneous effects obtained from panel quantile regression. The results also confirmed the presence of heterogeneous effects of EFC and TR on clean energy poverty. Furthermore, the study suggests promoting more incentives, investment, and monitoring in renewable energy resource infrastructure, carbon finance, and energy efficiency to promote trade and reduce clean energy poverty in the long run. • Energy-based green climate policies and the trade nexus investigated for 28 years. • Recent estimators employed in 65 of the world' top renewable energy generation countries. • Employment and economic growth mediate the positive nexus between energy-based policies and trade. • Energy policies and trade heterogeneously affects clean energy poverty across countries. [ABSTRACT FROM AUTHOR]