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Determinant of export diversification:An empirical analysis in the case of SADC countries

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  • Lukau Matezo Espoir

    (School of Economic, Hefei University of Technology, Hefei city, China)

Abstract

The main objective of this work is to identify the explanatory factors determining the diversification of exports in SADC countries during the period 1990-2018. We regress the indicator of export diversification, measured successively by the Herfindahl-Hirschman index on a set of explanatory variables. Using a next-generation panel data approach is applied, such as panel unit root, panel cointegration, fully modified OLS (FMOLS), and Dynamic Ordinary Least Squares (DOLS). The result of unit root tests for all these variables are stationary at their first difference and integrated of order one. Our results show that there is a long-term relationship between export diversification and GDP, openness to trade, accumulation of human and physical capital, foreign direct investment. All of its variables are the main explanatory factors for the diversification of exports in SADC countries. Key Words: Diversification, factors determinant, export, SADC

Suggested Citation

  • Lukau Matezo Espoir, 2020. "Determinant of export diversification:An empirical analysis in the case of SADC countries," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(7), pages 130-144, December.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:7:p:130-144
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