Does foreign aid impede economic complexity in developing countries?

Kamguia, Brice; Tadadjeu, Sosson; Njangang, Henri

doi:10.1016/j.inteco.2021.10.004

Cited by 31 publications

(25 citation statements)

References 97 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Specifically, for our baseline model, we consider foreign direct investment (FDI), education, institutional quality, remittances, country size, per capita income and industrialization. These variables are chosen in accordance with the recent related literature (Atasoy, 2020; Avom et al, 2022; Gnangnon, 2020; Kamguia et al, 2022; Kenec‐k‐Massil and Nvu‐h‐Njoya, 2021; Saadi, 2020). Table 1 presents the descriptive statistics for the variables used in this study.…”

Section: Methodsmentioning

confidence: 99%

“…This is particularly true if exports are dominated by primary and/or low‐productivity commodities. The recent literature highlights the important role that structural transformation of export sectors, or export diversification and sophistication, play in promoting faster and sustainable economic growth (Ajide, 2020; Balland et al, 2022; Kamguia et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Does infrastructural development foster export upgrading in Africa?

Kamguia

Ndjakwa

Tadadjeu

2023

African Development Review

Self Cite

View full text Add to dashboard Cite

A growing body of literature highlights the importance of export sophistication for economic development. Given the newness of the literature on export sophistication, its determinants are under‐exploited. As a pioneer study, this paper attempts to fill this gap in the literature by examining the effect of infrastructure development on export sophistication. Based on a panel of 45 African countries over the period 2003–2016, the results of the different estimations show that infrastructure, including transport, electricity, ICT and access to water and sanitation, improves export sophistication in Africa. Our results also show that the effect of infrastructure varies at different intervals of the export sophistication distribution. Therefore, improved infrastructure would allow African countries to not only improve their export structure but also achieve sustainable and durable growth.

show abstract

Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Does infrastructural development foster export upgrading in Africa?

Kamguia

Ndjakwa

Tadadjeu

2023

African Development Review

Self Cite

View full text Add to dashboard Cite

show abstract

“…To date, numerous studies have examined the determinants of a country's economic sophistication, highlighting factors such as human capital, foreign direct investment, innovation, financial development, remittances, birthplace diversity, intellectual property, intelligence, institutional quality, financial openness, foreign aid, colonisation, individualism, IMF programmes or conditionality and gender equality (Sweet and Maggio 2015 ; Coccia 2017 , 2020 , 2021 ; Valette 2018 ; Lapatinas and Litina 2019 ; Chu 2020 ; Kannen 2020 ; Bahar et al 2020 ; Nguyen et al 2020 ; Saadi 2020 ; Njangang et al 2021 ; Keneck-Massil and Nvuh-Njoya 2021 ; Nguyen 2021 ; Kamguia et al 2022 ; Vu 2022 ; Demir 2022 ; Maurya and Sahu 2022 ). However, studies examining the role of ICTs are very limited in number.…”

Section: Introductionmentioning

confidence: 99%

Does information and communication technologies affect economic complexity?

2023

View full text Add to dashboard Cite

Information and communication technology (ICT) and economic complexity are two concepts that have been extensively used in the recent literature. However, studies linking these two concepts are still at a premature stage and few existing studies have focussed on the role of the internet in a short-term context. Indeed, ICT measures the percentage of the population with access to the internet while economic complexity quantifies the set of productive capabilities and know-how embedded in the production process. This study aims to examine for the first time the long-term effect of ICT (quality and quantity) on economic complexity in a large panel of 112 countries over the period 1986–2017. The detailed analysis explores the long run and directional relationships using the homogeneity test, the cross-sectional dependence test, stationary tests in the presence of cross-sectional dependence, the panel cointegration test, dynamic OLS (DOLS), fully modified OLS (FMOLS), and the Granger panel causality test. The study finds long-run relationships between ICT, economic complexity, per capita GDP, government spending, and natural resources. Cointegration regression shows that the quality and especially the quantity of ICT, economic growth, and government spending have a positive and significant effect on economic complexity in the long run. Similarly, the results show that natural resource rent significantly impedes economic complexity. Finally, the results of the Granger causality test confirm the existence of a bidirectional relationship between ICT and economic complexity. Supplementary Information The online version contains supplementary material available at 10.1007/s43546-023-00467-8.

show abstract

“…Scholars have broadly studied how countries can diversify their production (Lashitew et al, 2021) and thereby exports. They find various diversifying factors in developing countries, including foreign aid (among many, two prominent examples are Kamguia et al, 2022; Gnangnon, 2021). Kamguia et al (2022) claim that foreign aid is the third largest capital flow to developing countries, after foreign direct investment (FDI) and remittances.…”

Section: Introductionmentioning

confidence: 99%

Foreign aid as a catalyst for improving productive capabilities in recipients

Arpaci‐Ayhan

2022

J of Intl Development

View full text Add to dashboard Cite

This article empirically investigates the impact of foreign aid on recipients' productive capabilities. Panel data consists of 86 countries covering the period 2003-2019. The novelty of this study is in linking aid to a new proxy for measuring productive capabilities-the economic complexity index.Because of its ability to predict future growth, economic complexity is valuable in gauging aid effectiveness. The findings show that foreign aid benefits the recipients' economic complexity, although the results are mixed when aid is disaggregated by sector and type at different income levels.

show abstract

Does foreign aid impede economic complexity in developing countries?

Cited by 31 publications

References 97 publications

Does infrastructural development foster export upgrading in Africa?

Does infrastructural development foster export upgrading in Africa?

Does information and communication technologies affect economic complexity?

Foreign aid as a catalyst for improving productive capabilities in recipients

Contact Info

Product

Resources

About