Business dynamics, knowledge economy, and the economic performance of African countries

Abstract

This paper develops a framework (a) to examine whether or not the African business environment hinders or promotes the knowledge economy (KE), (b) to determine how the KE affects economic performance, and (c) how economic performance relates to the inequality-adjusted human socioeconomic development (IHDI) of 53 African countries during the 1996-2010 time period. We estimate the linkages with three related equations. The results support a strong correlation between the dynamics of starting and doing business and variations in KE. The results also show that there exists a weak link between KE and economic performance. Nonetheless, KE-influenced performance plays a more important role in socioeconomic development than some of the conventional control variables like foreign direct investment (FDI), foreign aid, and even private investment.

Quality Innovation Cultivation Strategy for College Students in the Internet Era Oriented on the Cultivation of Innovative Ability

“…With the improvement of human society's productivity and scientific experimental capacity, we are gradually moving towards the knowledge economy era mainly characterized by intellectualization and informatization [1][2]. The era of the knowledge economy is the era based on continuous innovation of scientific knowledge, with human resources as the fundamental, innovation as the core, and innovation quality talents as the main body [3][4][5]. In the era of the knowledge economy, the competition among countries is mainly the competition of innovative talents.…”