Determinants of Export Diversification and Sophistication in Sub-Saharan Africa

Veiga, Paula; Cabral, Manuel de Herédia

doi:10.2139/ssrn.1665116

Cited by 32 publications

(24 citation statements)

References 35 publications

(32 reference statements)

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“…Specifically, the negative effect of per capita income on export diversification in the CEMAC sub region is contrary to the results obtained by Kamuganga (2012) and Cabral and Veiga (2010) who found a positive and statistical significant effect of GDP per capita on export diversification. However, the result is consistent to those of Elhiraika and Mbate (2014) and Parteka and Tanberi (2011) who found a negative and statistically significant effect of per capita on export diversification.…”

Section: Presentation and Discussion Of Resultscontrasting

confidence: 97%

The export-diversifying effect of foreign direct investment in the CEMAC Region

Fonchamnyo¹

2015

J. Econ. Int. Finance

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This study aimed at investigating the export-diversifying effect of Foreign Direct Investment on the economies of the CEMAC sub region -notably, Cameroon, Central Africa Republic, Chad, Congo, Equatorial Guinea and Gabon. This was achieved empirically by using a Generalized Linear Model estimation technique implemented using the logit link function and the Gaussian distribution family to take care of the fractional nature of the concentration index. The results, both descriptive and empirical, showed that within the sub region the countries are heterogeneous in terms of foreign direct investment and diversification index. The most diversified economy in the region is Cameroon, followed by Central Africa Republic, Gabon, Congo, Equatorial Guinea, while Chad is the most concentrated with an index of 0.80. Empirically, the results clearly showed that in this region foreign direct investment, value added in the manufacturing sector and trade openness foster export diversification while rents from natural resource endowment and appreciation of the official exchange rate deter export diversification. The results also point to the fact that the export diversifying effect of foreign direct investment differs across economies in this region, with statistically significant effect obtained for Cameroon and Central Africa Republic, while an insignificant positive effect is observed for Congo. The results obtained are quite implicative, suggesting that policies should be put together to encourage foreign direct investment in countries such as Gabon, Chad and Cameroon that have witnessed very low levels of foreign direct investment in this region, while institutions and structures that are friendly for investors should be put in place to promote the manufacturing sector in the entire region.

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Section: Presentation and Discussion Of Resultscontrasting

confidence: 97%

The export-diversifying effect of foreign direct investment in the CEMAC Region

Fonchamnyo¹

2015

J. Econ. Int. Finance

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“…Studies by Hausman et al (2007), Parteka & Tamberi (2008), Fu et al (2009), Weldemicael (2010, Cabral and Viega (2010) all find evidence in support of the notion that larger economies are associated with more sophisticated and diversified export structures due to economies of scale and a broader range of available skills. In contrast, Habiyaremye & Ziesemer (2006) find no evidence that population size is significant when estimating the determinants of export diversification in SSA, suggesting a uniform distribution of skills and economic activities across population groups in the region.…”

Section: The Determinants Of Export Sophistication and Diversificationmentioning

confidence: 96%

“…Given that per capita GDP is an accepted measure of development, the link between development and export structure suggested by Acemoglu & Zilibotti (1997) further indicates that per capita GDP affects export structure. Empirical investigations of the determinants of export sophistication and diversification, such as Hausman et al (2007), Parteka and Tamberi (2008), Schott (2008), Fu et al (2009), Cabral andViega (2010), and Weldemicael (2010) find evidence of a positive relationship between per capita GDP and export sophistication as well as export diversification.…”

Section: The Determinants Of Export Sophistication and Diversificationmentioning

confidence: 99%

“…The choice of variables is guided by previous research on the determinants of export sophistication and export diversification. This study aims to build on the model of Cabral & Viega (2010), which estimates the determinants of export sophistication and diversification in SSA. Their model fails to take into account the influence of technology spill-overs, infrastructure, and the interactions between domestic absorptive capacity and technology spill-overs.…”

Section: Model Specificationmentioning

confidence: 99%

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Upgrading Export Structure In Sub-Saharan Africa

Kohler¹,

Khumalo²

2015

IBER

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“…The project also includes comparisons of monetary financial aspects of the two economies. This is a topic which is commonly discarded for developing countries, namely in sub-Saharan Africa, perhaps even more so than the topic of export diversification and sophistication which is the contribution of Cabral and Veiga (2010) to the same project.…”

Section: Introductionmentioning

confidence: 99%

Comparing Exchange Market Pressure in West and Southern African Countries

Lopes

Santos

2010

SSRN Journal

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Abstract.We compare the performance of Cape Verde and Mozambique concerning financial credibility as measured by Exchange Market Pressure, an institutional feature that has often been overlooked in the literature as a relevant institution for economies. Drawing on previous research by , we expand their analysis and, using several definitions of "financial credibility", all related to different angles on Exchange Market Pressure indices, we conclude that -against reasonable benchmarks in their respective regions -financial credibility has been very good for Cape Verde and fairly good for Mozambique. July 2010This paper is part of the NBER project on African development successes described in Macedo and Pereira (2009). The authors thank NBER and the Center for Globalization and Governance at FEUNL for financial support and encouragement.

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Determinants of Export Diversification and Sophistication in Sub-Saharan Africa

Abstract: This paper studies the political and economic factors that determine successful export diversification (ED) and export sophistication (ES) strategies in the Sub

Cited by 32 publications

References 35 publications

The export-diversifying effect of foreign direct investment in the CEMAC Region

The export-diversifying effect of foreign direct investment in the CEMAC Region

Upgrading Export Structure In Sub-Saharan Africa

Comparing Exchange Market Pressure in West and Southern African Countries

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