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The Importance of Economic Complexity in the Resource-Growth Discourse: Empirical Evidence from Africa

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Listed:
  • Ekundayo Peter Mesagan

    (Pan-Atlantic University
    University of Economics Ho Chi Minh City (UEH))

  • Xuan Vinh Vo

    (University of Economics Ho Chi Minh City (UEH))

Abstract

This is a panel analysis for 28 African countries that focusses on investigating the mediating effect of economic complexity via resource-growth model in Africa between 1995 and 2019. We utilise the pool mean group (PMG) framework to analyse the panel series. Empirical result reveals that natural resources positively but insignificantly impact short- and long-run growth. For economic complexity, it exerts a significantly negative effect on growth in the short term but has a long-term favourable effect that is significant on growth. More so, the conditional impact of economic complexity and resource rent on economic growth is positive in both short- and long-run but only significant in the long run. Lastly, the study employs the economic complexity index plus to confirm the robustness of the empirical results. We therefore conclude that economic complexity is an important channel for promoting long-term resource blessing in Africa. The study then makes policies to improve the resource-growth link via the economic complexity channel.

Suggested Citation

  • Ekundayo Peter Mesagan & Xuan Vinh Vo, 2024. "The Importance of Economic Complexity in the Resource-Growth Discourse: Empirical Evidence from Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2772-2793, March.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:1:d:10.1007_s13132-023-01227-7
    DOI: 10.1007/s13132-023-01227-7
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    References listed on IDEAS

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