Why are some resource-rich countries more sophisticated than others? The role of the regime type and political ideology

Avom, Désiré; Keneck-Massil, Joseph; Njangang, Henri; Nvuh-Njoya, Youssouf

doi:10.1016/j.resourpol.2022.103067

Cited by 21 publications

(7 citation statements)

References 62 publications

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“…Natural resources and CO 2 emissions have a negative effect. This result is consistent with the related literature (Chu, 2020; Avom et al, 2022; Tadadjeu et al, 2022).…”

Section: Resultssupporting

confidence: 94%

“…Specifically, for our baseline model, we consider foreign direct investment (FDI), education, institutional quality, remittances, country size, per capita income and industrialization. These variables are chosen in accordance with the recent related literature (Atasoy, 2020; Avom et al, 2022; Gnangnon, 2020; Kamguia et al, 2022; Kenec‐k‐Massil and Nvu‐h‐Njoya, 2021; Saadi, 2020). Table 1 presents the descriptive statistics for the variables used in this study.…”

Section: Methodsmentioning

confidence: 99%

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Does infrastructural development foster export upgrading in Africa?

Kamguia

Ndjakwa

Tadadjeu

2023

African Development Review

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A growing body of literature highlights the importance of export sophistication for economic development. Given the newness of the literature on export sophistication, its determinants are under‐exploited. As a pioneer study, this paper attempts to fill this gap in the literature by examining the effect of infrastructure development on export sophistication. Based on a panel of 45 African countries over the period 2003–2016, the results of the different estimations show that infrastructure, including transport, electricity, ICT and access to water and sanitation, improves export sophistication in Africa. Our results also show that the effect of infrastructure varies at different intervals of the export sophistication distribution. Therefore, improved infrastructure would allow African countries to not only improve their export structure but also achieve sustainable and durable growth.

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“…Natural resources and CO 2 emissions have a negative effect. This result is consistent with the related literature (Chu, 2020; Avom et al, 2022; Tadadjeu et al, 2022).…”

Section: Resultssupporting

confidence: 94%

Section: Methodsmentioning

confidence: 99%

Does infrastructural development foster export upgrading in Africa?

Kamguia

Ndjakwa

Tadadjeu

2023

African Development Review

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“…On their part, Avom et al. (2022) argue that the main driving factor of economic complexity is natural resources endowment and that countries more endowed in natural capital turn to be less sophisticated compared to other countries. Zhu and Li (2017) argue that economic complexity and human capital have a beneficial interaction effect on economic growth.…”

Section: Review Of Related Literaturementioning

confidence: 99%

“…The last but not the least modulating mechanism is country stability. Recent research has argued for the importance of country stability for economic complexity of countries (Avom et al., 2022). Lower country risk and the higher country stability and the more the buoyancy of FI and markets increases, the financial system can therefore facilitate the grant of more financial resources to innovative projects and therefore help countries to produce more complex and sophisticated products (Vu, 2022).…”

Section: Review Of Related Literaturementioning

confidence: 99%

Financial development and economic complexity: The role of country stability

Ndoya,

Ongo Nkoa,

Kemeze

et al. 2023

Econ of Transit and Inst Chang

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The aim of this paper is to examine the relationships between financial development (FD), economic complexity and country stability. To achieve this objective, this paper applies a finite mixture model to a sample of 92 developing countries over the period 1995–2018. The study posits that the effect of FD on economic complexity differs across groups of countries with similar but unobserved characteristics. The study finds that the effect of FD on economic complexity varies across four classes of countries, which differ according to their level of economic, political and financial stability. Furthermore, the study argues that stable countries are more likely to be in class 1, including more performing countries – that is, the group of countries where FD spurs economic complexity. This finding remains consistent even when alternative measures of FD and economic complexity are considered. Hence, efforts by developing countries to undertake sound reforms to reduce economic, political and financial risks could help leverage the benefits of FD in fostering the development of sophisticated and complex economies.

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“…This result is also confirmed by Mhuru et al (2022), who found that governance quality is a possible channel through which a decline in innovative activity occurs after a resource windfall. On the other hand, recent findings by Avom et al (2022) highlight the role of the so-called resource curse in the literature on economic complexity. Specifically, it is found that natural resources, on average, have a significant negative effect on economic complexity.…”

Section: Does Natural Resources Endowment Matter?mentioning

confidence: 99%

Sophistication gap between countries: The effect of research and development expenditure

Kamguia,

Keneck‐Massil,

Njangang

et al. 2023

Econ of Transit and Inst Chang

Self Cite

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A recent strand of the literature suggests that economic sophistication is a strong predictor of economic development. Given that this branch of literature is relatively young, the determinants of economic sophistication have not yet been fully explored. This study contributes to this literature by examining the effect of research and development (R&D) investments on economic complexity. By applying a dynamic panel model to a panel of 67 countries, the following results are established: First, the results showed that research and development investments are associated with greater economic complexity. Second, when analyzing R&D by sector, the results highlight the importance of research spending by higher education, business, public sector and private non‐profit sector in improving economic complexity. In the same vein, investments in different R&D activities, including basic research, applied research and experimental research, increase economic complexity. In addition, we provided evidence that R&D spending in several fields, including medicine, engineering, natural sciences, social sciences and arts, also increases economic complexity. Third, we further analyze the heterogeneity of the results, highlighting the role of natural resource endowment and income level. However, investments in research and development remain associated with higher levels of economic complexity in resource‐poor countries in contrast to resource‐rich countries, where they have no effect. Based on these results, policy implications were discussed.

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Why are some resource-rich countries more sophisticated than others? The role of the regime type and political ideology

Cited by 21 publications

References 62 publications

Does infrastructural development foster export upgrading in Africa?

Does infrastructural development foster export upgrading in Africa?

Financial development and economic complexity: The role of country stability

Sophistication gap between countries: The effect of research and development expenditure

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