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Economic Proximity and Technology Flows: South Africa?s Influence and the Role of Technological Interaction in Botswana?s Diversification Effort

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Habi Yaremye, Alexis

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Abstract

In less than a decade after the end of the apartheid, South Africa has intensified its economic ties with its African neighbours to become one of the top-ten investors and trading partners of many African countries, displacing companies from the former colonial powers in Europe. Among such South Africa?s closest trade partners, Botswana has enjoyed one of the highest growth rates in the world for several decades, thanks to its rich mineral reserves, but its diamonds-dominated export structure has barely changed over this growth period. In a national endeavour to reduce its dependence on diamond exports, Botswana recognizes the importance of adopting foreign technologies and deploys sustained efforts to move to high value-added activities in other industries. Since the successful adoption of new technologies requires active technological learning, this paper takes the national innovation systems (NIS) approach and uses industry level panel data to analyse the role played by the proximity and interactions ...

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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number RP2008/92.

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Length: 40 pages
Date of creation: 2008
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Handle: RePEc:unu:wpaper:rp2008-92

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Keywords: innovation systems; technological learning; diversification;

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  2. Giorgio Barba Navaretti & Isidro Soloaga, 2001. "Weightless Machines and Costless Knowledge An Empirical Analysis of Trade and Technology Diffusion," Development Working Papers 154, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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  3. Eaton, Jonathan & Kortum, Samuel, 2001. "Trade in capital goods," European Economic Review, Elsevier, vol. 45(7), pages 1195-1235. [Downloadable!] (restricted)
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  4. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February. [Downloadable!] (restricted)
  5. Keller, Wolfgang, 1997. "Technology Flows between Industries: Identification and Productivity Effects," Economic Systems Research, Taylor and Francis Journals, vol. 9(2), pages 213-20, June.
  6. Effie Kesidou & Adam Szirmai, 2008. "Local knowledge spillovers, innovation and export performance in developing countries: empirical evidence from the Uruguay software cluster," European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 281-298. [Downloadable!] (restricted)
  7. Khan, Mohsin S & Knight, Malcolm D, 1988. "Import Compression and Export Performance in Developing Countries," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 315-21, May. [Downloadable!] (restricted)
  8. Bardhan, Pranab K & Lewis, Sydney, 1970. "Models of Growth with Imported Inputs," Economica, London School of Economics and Political Science, vol. 37(148), pages 373-85, November. [Downloadable!] (restricted)
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  9. Acemoglu, Daron & Johnson, Simon & Robinson, James & Thaicharoen, Yunyong, 2003. "Institutional causes, macroeconomic symptoms: volatility, crises and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 49-123, January. [Downloadable!] (restricted)
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  10. Navaretti, Giorgio Barba & Tarr, David G, 2000. "International Knowledge Flows and Economic Performance: A Review of the Evidence," World Bank Economic Review, Oxford University Press, vol. 14(1), pages 1-15, January.
  11. Dalia Hakura & Florence Jaumotte, 1999. "The Role of Inter- and Intraindustry Trade in Technology Diffusion," IMF Working Papers 99/58, International Monetary Fund.
  12. Keller, Wolfgang, 2002. " Trade and the Transmission of Technology," Journal of Economic Growth, Springer, vol. 7(1), pages 5-24, March. [Downloadable!] (restricted)
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  13. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 531-55, May. [Downloadable!] (restricted)
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