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Investigating the effects of globalization on economic sophistication in selected African countries

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  • Stéphane Mbiankeu Nguea
  • Hervé Kaffo Fotio
  • Louise Angèle Baida

Abstract

This research investigates the effects of globalization on economic sophistication for 27 African countries over the 1996–2017 period by employing Driscoll and Kraay standard errors and system generalized method of moments. We find that globalization enhances economic sophistication. Accounting for the dimensions of globalization, the results show that economic, social, and political globalization matter for enhancing economic sophistication. Furthermore, the decomposition of economic and social globalization indicates that financial globalization, trade openness, and FDI enhance economic sophistication, whereas Internet usage negatively affects economic sophistication. Policies to sustain the global integration pathway can enhance the diversity and sophistication of products in African countries.

Suggested Citation

  • Stéphane Mbiankeu Nguea & Hervé Kaffo Fotio & Louise Angèle Baida, 2022. "Investigating the effects of globalization on economic sophistication in selected African countries," African Development Review, African Development Bank, vol. 34(3), pages 324-338, September.
    • Handle: RePEc:bla:afrdev:v:34:y:2022:i:3:p:324-338
    DOI: 10.1111/1467-8268.12666
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    Cited by:

    1. Brice Kamguia & Manuella Ndjakwa & Sosson Tadadjeu, 2023. "Does infrastructural development foster export upgrading in Africa?," African Development Review, African Development Bank, vol. 35(1), pages 79-94, March.
    2. Margarita Billon & Antonio Rodríguez‐Andrés & Ernesto Rodríguez‐Crespo, 2023. "Broadband use and trade facilitation: Impacts on bilateral trade of sub‐Saharan countries," African Development Review, African Development Bank, vol. 35(2), pages 113-125, June.
    3. Noumba, Issidor & Nguea, Stéphane Mbiankeu, 2023. "Assessing the role of globalization for universal electricity access," International Economics, Elsevier, vol. 174(C), pages 180-195.

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