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Leveraging Innovation to Increase Intra-COMESA Trade

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  • Shinyekwa, Isaac M.B.
  • Lakuma, Paul Corti
  • Munu, Martin Luther

Abstract

This paper explores the role of technology innovation on the volume and value of COMESA exports to COMESA member states and other 43 significant importers by using a gravity model. The role of technology innovation on export trade was estimated using a panel data set of 12 years (2007-2018) with the Poisson Pseudo-Maximum Likelihood (PPML) technique given its advantage in handling several estimations challenges. The study found that technology innovation has a high potential in the COMESA region to enhance the overall quality of exports, increase competitive advantage and consequently increase the volume and value of exports. The study recommends that COMESA should increase investments in innovation, strengthen and build institutions that support technology innovation in addition to the ongoing trade facilitation efforts.

Suggested Citation

  • Shinyekwa, Isaac M.B. & Lakuma, Paul Corti & Munu, Martin Luther, 2021. "Leveraging Innovation to Increase Intra-COMESA Trade," African Journal of Economic Review, African Journal of Economic Review, vol. 10(01), December.
    • Handle: RePEc:ags:afjecr:320571
    DOI: 10.22004/ag.econ.320571
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    5. Leona Shao-Zhi Li & Yize Liu & Jia Yuan, 2024. "The effect of the U.S.–China trade war on Chinese corporate innovation: A curse or a blessing?," Working Papers 202418, University of Macau, Faculty of Business Administration.
    6. Carlos G'oes, 2024. "Trade, Growth, and Product Innovation," Papers 2406.08727, arXiv.org.
    7. Yan, Wenshou & Wang, Ruoxuan & Huang, Kaixing & Ouyang, Wenlu, 2024. "Does exporting to China spur firm innovation activities in developing countries?," China Economic Review, Elsevier, vol. 85(C).
    8. Asna Ashari, Parsa & Blind, Knut, 2024. "The effects of hydrogen research and innovation on international hydrogen trade," Energy Policy, Elsevier, vol. 186(C).
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    10. Cui, Chuantao & Li, Leona Shao-Zhi, 2023. "Trade policy uncertainty and new firm entry: Evidence from China," Journal of Development Economics, Elsevier, vol. 163(C).

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