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Export Diversification and Economic Growth in sub-Saharan Africa

Author

Listed:
  • Louis Sitsofe Hodey
  • Abena D. Oduro
  • Bernardin Senadza

    (Department of Economics, University of Ghana)

Abstract

Most countries in Sub-Saharan Africa (SSA) have been associated with low and volatile growth performance over the years. Export diversification has been identified in the literature as growth-inducing. This study provides evidence on the relationship between export diversification and economic growth using panel data of forty-two (42) SSA countries. Employing the system Generalized Method of Moments (GMM) estimation technique and three different measures of diversification, we find that export diversification has a positive and significant effect on economic growth in SSA. Our results are robust to the measures of export diversification. The results do not however support a hump-shaped (non-linear) relationship between export diversification and economic growth in SSA. The findings have relevant implications for policy.

Suggested Citation

  • Louis Sitsofe Hodey & Abena D. Oduro & Bernardin Senadza, 2015. "Export Diversification and Economic Growth in sub-Saharan Africa," Journal of African Development, African Finance and Economic Association (AFEA), vol. 17(2), pages 83-103.
    • Handle: RePEc:afe:journl:v:17:y:2015:i:2:p:83-103
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    Citations

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    Cited by:

    1. Sinesipho Siswana & Andrew Phiri, 2021. "Is Export Diversification or Export Specialization Responsible for Economic Growth in BRICS Countries?," The International Trade Journal, Taylor & Francis Journals, vol. 35(3), pages 243-261, May.
    2. Ademola Obafemi Young, 2024. "Intensive and Extensive Margins of Export Diversification as Strategies for Sustainable Economic Growth: Evidence from the Nigerian Economy," Foreign Trade Review, , vol. 59(2), pages 187-224, May.
    3. Mihalache-O'Keef, Andreea S., 2018. "Whose greed, whose grievance, and whose opportunity? Effects of foreign direct investments (FDI) on internal conflict," World Development, Elsevier, vol. 106(C), pages 187-206.
    4. Sonia Liaqat & Muhammad Irfan Chani, 2018. "The Impact of Exports Diversification on Economic Growth: Evidence from Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 7(4), pages 156-168, December.
    5. Tabash, Mosab I. & Mesagan, Ekundayo Peter & Farooq, Umar, 2022. "Dynamic linkage between natural resources, economic complexity, and economic growth: Empirical evidence from Africa," Resources Policy, Elsevier, vol. 78(C).
    6. COULIBALY, Gninlgonakan Romaric & AKIA, Sosthène Alban, 2017. "Export structure and economic growth in a developping country: case of Côte d'Ivoire," MPRA Paper 91374, University Library of Munich, Germany.
    7. Young Ademola Obafemi, 2022. "Specialization Versus Diversification as Alternative Strategies for Sustainable Growth in Resource-Rich Developing Countries. Case of Nigeria," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(3), pages 1-47, September.
    8. Akbas, Yusuf Ekrem & Sancar, Canan, 2021. "The impact of export dynamics on trade balance in emerging and developed countries: An evaluation with middle income trap perspective," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 357-375.
    9. Muhlis Can & Zahoor Ahmed & Mahmood Ahmad & Ihsan Oluc, 2024. "Economic progress in emerging countries: the roles of diversification of import and export products and energy consumption," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 18207-18229, July.
    10. Mehmet Akif KARA, 2020. "Testing the Hypothesis of Export-Oriented Growth at the Regional Level in Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 28(45).
    11. Coulibaly, Romaric & Akia, Sosthène Alban, 2019. "Export structure and economic growth in a developing country: case of Cote d’Ivoire," MPRA Paper 94116, University Library of Munich, Germany.

    More about this item

    Keywords

    Export Diversification; Economic Growth; Sub-Saharan Africa; System GMM;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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