IDEAS home Printed from https://ideas.repec.org/a/taf/deveza/v36y2019i4p409-425.html
   My bibliography  Save this article

Enhancing productive capabilities through intra-regional trade and cross-border investments in Southern Africa

Author

Listed:
  • Alexis Habiyaremye

Abstract

Regional integration is an important factor for enabling knowledge flows between economies and enhancing the capacity of firms within the integrated block to benefit from local knowledge spillovers. This study analyses data on economic interactions between Botswana and its technologically more advanced southern neighbour, South Africa, to examine the extent to which knowledge flows facilitated by geographical proximity translate into fostering technological learning and productivity of manufacturing firms. Industry- and firm-level data on bilateral capital goods trade and investments over the period 1991–2013 are used to assess the technological learning of the manufacturing sector in Botswana. This study also applies the Hunt, J, & Tybout, J (1999. Does Promoting High-Tech Products Spur Development? FEEM Working Paper REG 42. Milan: Fondazione Eni EnricoMattei) technological sophistication framework to analyse the role played by regional trade and investment flows between the economies of South Africa and Botswana in the skills intensification of manufacturing firms. Skills intensity decomposition reveals that Botswana’s manufacturing technical intensity has been positively influenced by the extent of capital goods trade and investment linkages with South African economy.

Suggested Citation

  • Alexis Habiyaremye, 2019. "Enhancing productive capabilities through intra-regional trade and cross-border investments in Southern Africa," Development Southern Africa, Taylor & Francis Journals, vol. 36(4), pages 409-425, July.
    • Handle: RePEc:taf:deveza:v:36:y:2019:i:4:p:409-425
    DOI: 10.1080/0376835X.2018.1504673
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/0376835X.2018.1504673
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/0376835X.2018.1504673?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
    2. Christine Mutz & Thomas Ziesemer, 2008. "Simultaneous estimation of income and price elasticities of export demand, scale economies and total factor productivity growth for Brazil," Applied Economics, Taylor & Francis Journals, vol. 40(22), pages 2921-2937.
    3. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    4. Habiyaremye, Alexis, 2016. "Is Sino-African trade exacerbating resource dependence in Africa?," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 1-12.
    5. Richard Blundell & Stephen Bond & Frank Windmeijer, 2000. "Estimation in dynamic panel data models: improving on the performance of the standard GMM estimator," IFS Working Papers W00/12, Institute for Fiscal Studies.
    6. Lall, Sanjaya, 1992. "Technological capabilities and industrialization," World Development, Elsevier, vol. 20(2), pages 165-186, February.
    7. Effie Kesidou & Adam Szirmai, 2008. "Local knowledge spillovers, innovation and export performance in developing countries: empirical evidence from the Uruguay software cluster," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 281-298.
    8. Paola Criscuolo & Rajneesh Narula, 2008. "A novel approach to national technological accumulation and absorptive capacity: aggregating Cohen and Levinthal," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(1), pages 56-73.
    9. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    10. Wolfgang Keller, 1997. "Technology Flows Between Industries: Identification and Productivity Effects," Economic Systems Research, Taylor & Francis Journals, vol. 9(2), pages 213-219.
    11. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    12. repec:bla:econom:v:41:y:1974:i:162:p:176-93 is not listed on IDEAS
    13. Dieter Ernst & Bengt-åke Lundvall, 2004. "Information Technology in the Learning Economy: Challenges for Developing Countries," Chapters, in: Erik S. Reinert (ed.), Globalization, Economic Development and Inequality, chapter 9, Edward Elgar Publishing.
    14. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "Economic Integration and Endogenous Growth," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 1, pages 3-32, World Scientific Publishing Co. Pte. Ltd..
    15. Eaton, Jonathan & Kortum, Samuel, 2001. "Trade in capital goods," European Economic Review, Elsevier, vol. 45(7), pages 1195-1235.
    16. Benhabib, Jess & Spiegel, Mark M., 2005. "Human Capital and Technology Diffusion," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 13, pages 935-966, Elsevier.
    17. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    18. Eli Bekman & John Bound & Stephen Machin, 1998. "Implications of Skill-Biased Technological Change: International Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(4), pages 1245-1279.
    19. Khan, Mohsin S & Knight, Malcolm D, 1988. "Import Compression and Export Performance in Developing Countries," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 315-321, May.
    20. Giorgio Barba Navaretti & David G. Tarr, 2017. "International Knowledge Flows and Economic Performance: A Review of the Evidence," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 6, pages 129-143, World Scientific Publishing Co. Pte. Ltd..
    21. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    22. Carl J. Dahlman & Richard Nelson, 1995. "Social Absorption Capability, National Innovation Systems and Economic Development," Palgrave Macmillan Books, in: Bon Ho Koo & Dwight H. Perkins (ed.), Social Capability and Long-Term Economic Growth, chapter 5, pages 82-122, Palgrave Macmillan.
    23. Barba Navaretti, Giorgio & Soloaga, Isidro, 2001. "Weightless machines and costless knowledge - an empirical analysis of trade and technology diffusion," Policy Research Working Paper Series 2598, The World Bank.
    24. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    25. Keller, Wolfgang, 2002. "Trade and the Transmission of Technology," Journal of Economic Growth, Springer, vol. 7(1), pages 5-24, March.
    26. David Roodman, 2006. "How to Do xtabond2," North American Stata Users' Group Meetings 2006 8, Stata Users Group.
    27. Bon Ho Koo & Dwight H. Perkins (ed.), 1995. "Social Capability and Long-Term Economic Growth," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-13512-7.
    28. repec:bla:econom:v:37:y:1970:i:148:p:373-85 is not listed on IDEAS
    29. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alexis Habiyaremye, 2020. "Fast tracking the SADC integration agenda to unlock regional collaboration gains along growth corridors in Southern Africa," WIDER Working Paper Series wp-2020-95, World Institute for Development Economic Research (UNU-WIDER).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexis Habiyaremye, 2008. "Economic Proximity and Technology Flows: South Africa's Influence and the Role of Technological Interaction in Botswana's Diversification Effort," WIDER Working Paper Series RP2008-92, World Institute for Development Economic Research (UNU-WIDER).
    2. Meschi, Elena & Taymaz, Erol & Vivarelli, Marco, 2011. "Trade, technology and skills: Evidence from Turkish microdata," Labour Economics, Elsevier, vol. 18(S1), pages 60-70.
    3. Alexis Habiyaremye, 2013. "Imported Capital Goods and Manufacturing Productivity: Evidence from Botswana's Manufacturing Sector," South African Journal of Economics, Economic Society of South Africa, vol. 81(4), pages 581-604, December.
    4. Johanna Vogel, 2015. "The two faces of R&D and human capital: Evidence from Western European regions," Papers in Regional Science, Wiley Blackwell, vol. 94(3), pages 525-551, August.
    5. Jakob B. Madsen & Md. Rabiul Islam & James B. Ang, 2010. "Catching up to the technology frontier: the dichotomy between innovation and imitation," Canadian Journal of Economics, Canadian Economics Association, vol. 43(4), pages 1389-1411, November.
    6. Yilmaz Kiliçaslan & Ünal Töngür, 2017. "Information and Communication Technologies and Employment Generation in Turkish Manufacturing Industry," Working Papers 1120, Economic Research Forum, revised 07 2017.
    7. Costantini, Valeria & Liberati, Paolo, 2014. "Technology transfer, institutions and development," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 26-48.
    8. Habiyaremye, Alexis, 2016. "Is Sino-African trade exacerbating resource dependence in Africa?," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 1-12.
    9. Kemeny, Thomas, 2010. "Does Foreign Direct Investment Drive Technological Upgrading?," World Development, Elsevier, vol. 38(11), pages 1543-1554, November.
    10. Imen Mohamed Sghaier, 2020. "Does Financial Development Affect the Economic Growth Gains from Trade Openness?," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 666-682, December.
    11. Sugata Marjit & Anwesha Basu & C. Veeramani, 2019. "Growth Gains from Trade," CESifo Working Paper Series 7905, CESifo.
    12. Hans Lööf & Martin Andersson, 2010. "Imports, Productivity and Origin Markets: The Role of Knowledge‐intensive Economies," The World Economy, Wiley Blackwell, vol. 33(3), pages 458-481, March.
    13. Sithanonxay Suvannaphakdy & Chris Czerkawaski & Toshihisa Toyoda, 2013. "Potential Impacts Of Regional Trade Enlargement In East Asia On Laos' Trade," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 38(3), pages 85-110, September.
    14. Lanouar Charfeddine & Zouhair Mrabet, 2015. "Trade liberalization and relative employment: further evidence from Tunisia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 173-202, June.
    15. Martin Bijsterbosch & Marcin Kolasa, 2010. "FDI and productivity convergence in Central and Eastern Europe: an industry-level investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(4), pages 689-712, January.
    16. Noman, Abu Hanifa Md. & Gee, Chan Sok & Isa, Che Ruhana, 2018. "Does bank regulation matter on the relationship between competition and financial stability? Evidence from Southeast Asian countries," Pacific-Basin Finance Journal, Elsevier, vol. 48(C), pages 144-161.
    17. Scott, K. Rebecca, 2011. "Demand and Price Volatility: Rational Habits in International Gasoline Demand," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2q87432b, Department of Agricultural & Resource Economics, UC Berkeley.
    18. Sarah Sanya & Simon Wolfe, 2011. "Can Banks in Emerging Economies Benefit from Revenue Diversification?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 40(1), pages 79-101, October.
    19. Sergey Lychagin & Joris Pinkse & Margaret E. Slade & John Van Reenen, 2016. "Spillovers in Space: Does Geography Matter?," Journal of Industrial Economics, Wiley Blackwell, vol. 64(2), pages 295-335, June.
    20. Bas Straathof & Gert Jan Linders & Arjan Lejour & Jan Möhlmann, 2008. "The internal market and the Dutch economy: implications for trade and economic growth," CPB Document 168, CPB Netherlands Bureau for Economic Policy Analysis.

    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:taf:deveza:v:36:y:2019:i:4:p:409-425. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CDSA20 .

    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.