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Assessing the Determinants of Export Diversification in Africa

Author

Listed:
  • Adam B. ELHIRAIKA
  • Michael M. MBATE

Abstract

Diversification of production and exports is critical for African countries to promote sustainable growth and economic transformation. This paper empirically explores the long-run determinants of export diversification by estimating a cross country regression model using a panel of 53 African countries for 1995-2011. System GMM estimates provide robust evidence supporting the importance of per capita income, infrastructure, public investment, human capital and the institutional framework as significant drivers of export diversification. This calls on African countries to design and implement long-term development strategies and institutional reforms to foster export diversification and economic transformation.

Suggested Citation

  • Adam B. ELHIRAIKA & Michael M. MBATE, 2014. "Assessing the Determinants of Export Diversification in Africa," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 147-160.
    • Handle: RePEc:eaa:aeinde:v:14:y:2014:i:1_11
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    File URL: http://www.usc.es/economet/reviews/aeid14111.pdf
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    More about this item

    Keywords

    Export Diversification; System GMM; Economic Growth.;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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