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Absorptive Capacity and Export Diversification in Sub-Saharan African Countries

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  • Habiyaremye, Alexis

    ()
    (UNU-MERIT)

  • Ziesemer, Thomas

    ()
    (UNU-MERIT)

Abstract

This paper examines the extent to which dependence on primary commodities in Sub-Saharan African(SSA) countries can be explained by low levels of absorptive capacity (the ability to acquire, internalize and utilize knowledge developed elsewhere). We examine the individual and combined effects of various indicators of absorptive capacity on export diversification. We test the significance of these effects on a sub-sample consisting of SSA countries and a sample of other developing countries. Our results show that the association between higher levels human capital and basic infrastructure -two crucial components of absorptive capacity -with more export diversification is subject to threshold level effects, while the abundance of natural resources turns out to be impeding diversification in SSA. These results imply that SSA countries need to substantially increase their investments in basic infrastructure as well as reinforce the accumulation pace of human and physical capital to allow active technological learning and reduce their dependence on primary commodities.

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Bibliographic Info

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 030.

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Date of creation: 2006
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Handle: RePEc:unm:unumer:2006030

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Related research

Keywords: absorptive capacity; human capital; capital accumulation; export diversification; Sub-Saharan Africa.;

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Cited by:
  1. Chandra, Vandana & Osorio Rodarte, Israel, 2009. "Options for Income-Enhancing Diversification in Burkina Faso," MPRA Paper 20928, University Library of Munich, Germany.
  2. Chandra, Vandana & Osorio Rodarte, Israel, 2007. "Options for Export Diversification and Faster Export Growth in Ghana," MPRA Paper 18539, University Library of Munich, Germany.
  3. Mina Baliamoune-Lutz, 2011. "Growth by Destination (Where You Export Matters): Trade with China and Growth in African Countries," African Development Review, African Development Bank, African Development Bank, vol. 23(2), pages 202-218.
  4. Ziesemer, Thomas, 2010. "From Trends in Commodities and Manufactures to Country Terms of Trade," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Alain Nurbel & Ibrahim Ahamada, 2008. "Investissements directs étrangers entrants et développement : l'enjeu de la capacité d'absorption," Mondes en développement, De Boeck Université, De Boeck Université, vol. 0(3), pages 79-96.
  6. Jonathan Munemo, 2011. "Foreign aid and export diversification in developing countries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 20(3), pages 339-355.
  7. Brenton, Paul & Hoppe, Mombert, 2007. "Clothing and export diversification : still a route to growth for low-income countries ?," Policy Research Working Paper Series 4343, The World Bank.
  8. Terheggen, Anne, 2010. "The new kid in the forest: the impact of China's resource demand on Gabon's tropical timber value chain," MPRA Paper 37982, University Library of Munich, Germany.
  9. World Bank, 2010. "Burkina Faso - Promoting Growth, Competitiveness and Diversification : Country Economic Memorandum, Volume 3. Enhancing Growth Factors," World Bank Other Operational Studies 12359, The World Bank.
  10. Ricardo Argüello, 2013. "Trade diversification in Colombia, 1991-2011," DOCUMENTOS DE TRABAJO, UNIVERSIDAD DEL ROSARIO 011016, UNIVERSIDAD DEL ROSARIO.
  11. World Bank, 2007. "Ghana - Meeting the Challenge of Accelerated and Shared Growth : Country Economic Memorandum, Volume 1. Background Papers," World Bank Other Operational Studies 7661, The World Bank.
  12. Ziesemer, Thomas, 2011. "Country terms of trade: Trends, unit roots, over-differencing, endogeneity, time dummies, and heterogeneity," MERIT Working Papers, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) 065, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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