When Does Export Diversification Improve Economic Growth? A Comparative Analysis of Sub-Saharan African Countries

Yuni, Denis Nfor; Urama, Nathaniel E.; Ugwuegbe, U.; Agbanike, Tobechi F.

doi:10.1080/10800379.2020.12097359

Cited by 2 publications

(2 citation statements)

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“…Most of the empirical inquiries (Arize, 1996) focused attention on industrial and advanced (particularly, European, Asian, American) economies. In addition, available extant studies based exclusively on African/Nigerian data (Abdullahi & Jibir, 2018;Doki & Tyokohol, 2019;Duru & Ehidiamhen, 2018;Hesse, 2008;Hodey et al, 2015;Huseyin & Shuaibu, 2020;Johnson, 2016;Lugeiyamu, 2016;Matezo et al, 2021;Nwosa et al, 2019;Odularu, 2009;Oyelami & Alege 2018;Owan et al, 2020;Vakataki'Ofa et al, 2016;Yuni et al, 2020) that have examined the nature of the relationship between export diversification and economic growth have focused mainly on investigating the growth impacts of overall export diversification which by its nature have been far from being definitive on comparative analysis of the effects of export diversification at intensive and extensive margins on growth. Specifically, no known study has been reported exclusively for Nigeria.…”

Section: Review Of Related Studiesmentioning

confidence: 99%

Intensive and Extensive Margins of Export Diversification as Strategies for Sustainable Economic Growth: Evidence from the Nigerian Economy

Young

2023

Foreign Trade Review

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Two opposite strands of literature analysing export diversification’s role in promoting sustainable growth have evolved in international economics and development, namely, the intensive and extensive margins of exports. This study empirically investigates which of the margin is more useful towards promoting sustainable growth using annual time series data of Nigeria for the period 1960–2021. Autoregressive distributed lag (ARDL) and innovative accounting procedure were employed. The ARDL results reveal that both margins significantly enhance growth in short and long run. However, importance of the extensive margin, in aggregate, dominates that of the intensive margin. Likewise, the results from innovative accounting procedures reveal that although both margins contribute positively to growth, the contribution to growth of extensive margin dominates over that of the intensive margin. These results, thus, lend credence to the extensive-margin exposition, which postulates that the export of extant commodities to new market destinations or export of new commodities to new and/or old market destinations plays a relatively more important role in export growth/diversification and, ultimately, sustainable growth. The study recommends that governments should develop and implement economic policies aimed at enhancing exports of value-added commodities—due to their relatively high income and price elasticities over primary commodities—to maximise the benefits in the extensive margin. JEL Codes: F10, F14, O10, O12, O50, O55

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Section: Review Of Related Studiesmentioning

confidence: 99%

Intensive and Extensive Margins of Export Diversification as Strategies for Sustainable Economic Growth: Evidence from the Nigerian Economy

Young

2023

Foreign Trade Review

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“…Yuni [10] did a study to ascertain the relationships between export diversity and economic growth in the Sub-Saharan African nations using fixed effect and generalized least square regression models. For lower-middleincome nations, the study indicates a positive but insignificant correlation, a positive and significant relationship, and a negative but insignificant association for upper-middle-income countries.…”

Section: Empirical Reviewmentioning

confidence: 99%

Impact of Export Diversification on Economic Growth in Sub-Saharan Africa (SSA)

Ajayi

2023

SAJSSE

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This study investigated the impact of export diversification on the economic growth of countries in Sub-Saharan African (SSA). Trade Data are gathered from the World Integrated Trade Solution (WITS), and UN Comtrade database, using a 6-digit level range of the Standard International Trade Classification (SITC) and the Harmonised System (HS) for the Countries. Export diversification Indices data are proxies from the Herfindahl Hirschman Index (HHI) which represents the level of export product diversification for all forty-eight (48) SSA Countries between 1995 and 2020. The Panel Autoregressive Distributed Lagged Model (P-ARDL) was applied in the study. Other analysis including correlation analysis, multicollinearity, and Unit Root tests were used to achieve the objective of the study. The findings showed that export diversification has not really benefitted the SSA Countries; also, exporting raw materials and other primary products does not benefit the region, and therefore, the countries should continue leveraging on the potential of diversifying their exports and exploring sectors such as the manufacturing to attain more economic gains. To achieve export gains, oil/minerals products should be exported as finished products, not as raw materials, especially, from those nations that are resources endowed. These raw materials should be best used domestically to aid production into finished/refined products for subsequent exports.

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When Does Export Diversification Improve Economic Growth? A Comparative Analysis of Sub-Saharan African Countries

Cited by 2 publications

References 4 publications

Intensive and Extensive Margins of Export Diversification as Strategies for Sustainable Economic Growth: Evidence from the Nigerian Economy

Intensive and Extensive Margins of Export Diversification as Strategies for Sustainable Economic Growth: Evidence from the Nigerian Economy

Impact of Export Diversification on Economic Growth in Sub-Saharan Africa (SSA)

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