Does Globalization Enhances Product Sophistication?

Nguea, Stéphane Mbiankeu; Fotio, Hervé Kaffo

doi:10.2139/ssrn.3997981

Cited by 2 publications

(3 citation statements)

References 15 publications

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“…the lag of the dependent variable) has a positive and significant impact on the current level, implying that past economic complexity significantly influences current economic complexity in Africa. This finding is in line with some studies, such as Nguea and Fotio (2021), and Javorcik and Poelhekke (2017).…”

Section: Resultssupporting

confidence: 93%

“…The results in Tables 6 and 7 indicate that physical capital stock has a negative and significant impact on economic complexity in Africa. Not only does this finding contradict economic theory but it also contradicts previous studies such as Nguea and Fotio (2021), and Yalta and Yalta (2021), which suggest that capital accumulation can stimulate economic activities. However, our finding aligns with the reality of many African economies that have been struggling with the challenges of poverty, unemployment, and low levels of capital accumulation.…”

Section: Resultscontrasting

confidence: 77%

“…Some studies ( e.g . Gabrielczak & Serwach, 2020; Khan & Yu, 2020; Nguea & Fotio, 2021; Nguyen et al, 2020) have also obtained similar conclusion. Furthermore, international tourism is found to be exerting positive and statistically significant influence on economic complexity in Africa.…”

Section: Resultsmentioning

confidence: 66%

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Effects of terrorism and economic policy uncertainty on economic complexity in Africa: A study of the moderating role of governance institutions

Ogbuabor,

Emeka,

Nwosu

2023

South African J Economics

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Following the paucity of empirical evidence on the effects of terrorism and uncertainty on economic complexity in Africa and the moderating role of governance institutions on these relationships, this study raised two important questions. First, how are terrorism and uncertainty impacting on economic complexity in Africa? Second, how are governance institutions moderating the effects of terrorism and uncertainty on economic complexity in Africa? To answer these questions, the study employed pooled ordinary least squares and dynamic system generalized method of moments (GMM) estimators, with a panel of 33 African countries over the period 2010–2021. We find that the unconditional effects of terrorism and uncertainty on economic complexity in Africa are predominantly negative and significant. We also find that governance institutions predominantly have unconditional positive and significant impact on economic complexity in Africa but failed to moderate the adverse effect of uncertainty on economic complexity. However, trade openness, international tourism and lagged economic complexity are potent factors promoting economic complexity in Africa, while physical capital stock remained a deterring factor. The study concluded that policymakers and leaders in Africa should engage in collaborative efforts at the African Union level to promote high‐quality institutions, while simultaneously addressing the detrimental effects of terrorism and uncertainty on the continent.

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Section: Resultssupporting

confidence: 93%

Section: Resultscontrasting

confidence: 77%