IDEAS home Printed from https://ideas.repec.org/a/bla/afrdev/v31y2019i1p129-143.html
   My bibliography  Save this article

Technological Innovations in the Control of International Exchange: Lessons for Africa

Author

Listed:
  • Joseph Pasky Ngameni
  • Muhammad Arshad Khan

Abstract

Empirical studies on international trade highlight the role of innovation on international exchange but do not capture the effect of technological innovation when unobservable common factors (UCFs) are considered. This paper examines the long‐run relationship between technological innovation and international exchange using panel data for eight African countries over the period 1981–2013. The non‐stationarity and cointegration between technological innovation, international exchange, public investment, real gross domestic income and foreign direct investment were examined, controlling for cross‐sectional dependence and heterogeneity between countries. The results suggest that technological innovation in Africa remains low after controlling for UCFs, while public investment, real gross domestic product and foreign direct investment have significant impact on international exchange. Moreover, the results from the homogeneous and heterogeneous estimates, with and without UCFs, show that ignoring UCFs is likely to bias the coefficients. These findings reveal that African countries should invest more in public infrastructures and research and development to upgrade their capability To play an active role in the international market.

Suggested Citation

  • Joseph Pasky Ngameni & Muhammad Arshad Khan, 2019. "Technological Innovations in the Control of International Exchange: Lessons for Africa," African Development Review, African Development Bank, vol. 31(1), pages 129-143, March.
    • Handle: RePEc:bla:afrdev:v:31:y:2019:i:1:p:129-143
    DOI: 10.1111/1467-8268.12368
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-8268.12368
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-8268.12368?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:afrdev:v:31:y:2019:i:1:p:129-143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/afdbgci.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.