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Trade liberalization and technology absorption in a less developing country context

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  • Alamedin Bannaga

Abstract

Purpose - – The paper aims to investigate the relationship between trade liberalization and technology absorption in a less developing country context. The objective is to empirically test the relationship between these two variables. This analysis was conducted in Sub-Saharan African economies. Design/methodology/approach - – A panel regression of 20 countries in Sub-Saharan Africa was estimated based on a model that takes into account both trade policy and non-policy factors affecting technology absorption. Findings - – A positive and significant relationship was found between trade liberalization and technology absorption. This relationship is valid across a variety of model specifications, technology absorption proxies and estimation techniques. Moreover, non-policy factors such as geographical spillover play significant role in technology absorption. Originality/value - – The paper examines the link between the trade liberalization and the technology absorption in Sub-Saharan Africa. The analysis is empirical in nature and builds on panel estimations. The novelty of the paper comes from the topic investigated and the focus on a region which has not attracted much attention in the literature.

Suggested Citation

  • Alamedin Bannaga, 2015. "Trade liberalization and technology absorption in a less developing country context," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 14(2), pages 149-170, July.
    • Handle: RePEc:eme:ijdipp:v:14:y:2015:i:2:p:149-170
    DOI: 10.1108/IJDI-12-2014-0085
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    More about this item

    Keywords

    Sub-Saharan Africa; Technology absorption; Empirical evidence; Trade liberalization; O24; O3; F63; F14;
    All these keywords.

    JEL classification:

    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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