Economic complexity and inclusive growth in Sub-Saharan Africa: a cross country analysis
- Authors: Maxwele, Chuma
- Date: 2024-04
- Subjects: Gross domestic product , Economic development -- Africa , International trade , Balance of trade -- Africa Africa, Sub-Saharan Africa, Sub-Saharan Africa, Sub-Saharan Africa, Sub-Saharan -- Economic conditions
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/65142 , vital:74037
- Description: The concept of economic complexity is a relatively new term in economics literature, it is used to refer to the magnitude of productive knowledge or capabilities embedded in society. However, because of its potential impact on national prosperity, it is hypothesized that differences in the degree of economic complexity are major factors of inequalities in the growth rates of nations. The approach of economic complexity makes use of fine-grained data on thousands of economic activities to learn both abstract factors of production and the way they combine into thousands of outputs. However, it is only in recent years that studies have started to consider the association between economic complexity and economic growth. As such, there is a lack of robust, vigorous literature that examines the association between economic complexity and inclusive growth, particularly in the context of Sub Sub-Saharan Africa. The extant literature focuses on the relationship between economic complexity and isolated cases of some macroeconomic indicators of growth. As a departure from the existing studies and as a contribution to the field, inclusive growth, in this study, is measured as a composite index from various growth indicators as postulated in the inclusive growth theories and then each indicator is viewed separately. Thus, the general purpose of the study is to investigate the relationship between economic complexity and inclusive growth in Sub Sub-Saharan Africa from 1996 to 2019 2019, which is the primary objective of the study. The first objective of the study is to examine the effect of economic complexity on welfare indicators in Sub Sub-Saharan African countries from 1996 to 2019. In examining the effect, the study employed a Pool Mean Group – Autoregressive Distributive Lag (PMG PMG-ARDL) model. The results of the study reveal that economic complexity, economic growth rate, and terms of trade have a positive and statistically significant long-run impact on welfare in Sub Sub-Saharan Africa. The short-run dynamics reveal that economic complexity negatively and significantly affects welfare. The study's second objective examines the impact of economic complexity on economic indicators in Sub-Saharan African countries from 1996 to 2019. To examine the impact, the study employed the Panel Ordinary Least Square (POLS) model. The results of the study demonstrate that economic complexity, foreign direct investment, inflation, and population growth have a negative and significant impact on the economic index. However, government expenditure demonstrates a positive and significant effect on economic indicators. The third objective of the study examines the effect of economic complexity on human development in Sub Sub-Saharan African countries from 1996 to 2019. In examining the effect, the study employed the Panel Dynamic Ordinary Least Square (DOLS) model for the long-run relationship, and the Generalised Method of Moments (GMM) for the short-run relationship. The results of the long long-run relationship show that economic complexity has a negative impact on human development which is significant at 1 percent. Short Short-run relationships reveal that economic complexity has a positive and insignificant impact on human development. The fourth objective of the study investigates the effect of economic complexity on good governance in Sub Sub-Saharan African countries from 1996 to 2019. The study employed the Pool Mean Group – Autoregressive Distributive Lag (PMG PMG-ARDL) model to investigate the relationship. The PMG PMG-ARDL model results reveal that economic complexity, foreign aid, and the Gini coefficient have a positive and statistically significant long-run impact on good governance in Sub Sub-Saharan Africa. The fifth and last objective of the study investigates the effect of economic complexity on inclusive growth in Sub Sub-Saharan African countries from year 1996 to 2019. To investigate the relationship, the study applied the Panel Vector Autoregressive (P-VAR) model. The results from the grangerGranger-causality test show a unidirectional relationship running from economic complexity to inclusive growth, the panel VAR model reveals that economic complexity has a negative and significant effect on inclusive growth at 10 percent level of significance in Sub Sub-Saharan Africa. The present study investigated five objectives, and out of the five objectives, only two (i.e., Welfare and Good Governance ) have a positive and significant relationship with economic complexity in the long long-run. This implies that with more productive structures, these countries would be in a better position to promote institutional quality and later advance welfare regimes in Sub Sub-Saharan Africa. However, for that goal to be realized, the Sub-Saharan African region should first achieve, or have, a certain level of economic development. , Thesis (PhD) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
- Full Text:
- Date Issued: 2024-04
- Authors: Maxwele, Chuma
- Date: 2024-04
- Subjects: Gross domestic product , Economic development -- Africa , International trade , Balance of trade -- Africa Africa, Sub-Saharan Africa, Sub-Saharan Africa, Sub-Saharan Africa, Sub-Saharan -- Economic conditions
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10948/65142 , vital:74037
- Description: The concept of economic complexity is a relatively new term in economics literature, it is used to refer to the magnitude of productive knowledge or capabilities embedded in society. However, because of its potential impact on national prosperity, it is hypothesized that differences in the degree of economic complexity are major factors of inequalities in the growth rates of nations. The approach of economic complexity makes use of fine-grained data on thousands of economic activities to learn both abstract factors of production and the way they combine into thousands of outputs. However, it is only in recent years that studies have started to consider the association between economic complexity and economic growth. As such, there is a lack of robust, vigorous literature that examines the association between economic complexity and inclusive growth, particularly in the context of Sub Sub-Saharan Africa. The extant literature focuses on the relationship between economic complexity and isolated cases of some macroeconomic indicators of growth. As a departure from the existing studies and as a contribution to the field, inclusive growth, in this study, is measured as a composite index from various growth indicators as postulated in the inclusive growth theories and then each indicator is viewed separately. Thus, the general purpose of the study is to investigate the relationship between economic complexity and inclusive growth in Sub Sub-Saharan Africa from 1996 to 2019 2019, which is the primary objective of the study. The first objective of the study is to examine the effect of economic complexity on welfare indicators in Sub Sub-Saharan African countries from 1996 to 2019. In examining the effect, the study employed a Pool Mean Group – Autoregressive Distributive Lag (PMG PMG-ARDL) model. The results of the study reveal that economic complexity, economic growth rate, and terms of trade have a positive and statistically significant long-run impact on welfare in Sub Sub-Saharan Africa. The short-run dynamics reveal that economic complexity negatively and significantly affects welfare. The study's second objective examines the impact of economic complexity on economic indicators in Sub-Saharan African countries from 1996 to 2019. To examine the impact, the study employed the Panel Ordinary Least Square (POLS) model. The results of the study demonstrate that economic complexity, foreign direct investment, inflation, and population growth have a negative and significant impact on the economic index. However, government expenditure demonstrates a positive and significant effect on economic indicators. The third objective of the study examines the effect of economic complexity on human development in Sub Sub-Saharan African countries from 1996 to 2019. In examining the effect, the study employed the Panel Dynamic Ordinary Least Square (DOLS) model for the long-run relationship, and the Generalised Method of Moments (GMM) for the short-run relationship. The results of the long long-run relationship show that economic complexity has a negative impact on human development which is significant at 1 percent. Short Short-run relationships reveal that economic complexity has a positive and insignificant impact on human development. The fourth objective of the study investigates the effect of economic complexity on good governance in Sub Sub-Saharan African countries from 1996 to 2019. The study employed the Pool Mean Group – Autoregressive Distributive Lag (PMG PMG-ARDL) model to investigate the relationship. The PMG PMG-ARDL model results reveal that economic complexity, foreign aid, and the Gini coefficient have a positive and statistically significant long-run impact on good governance in Sub Sub-Saharan Africa. The fifth and last objective of the study investigates the effect of economic complexity on inclusive growth in Sub Sub-Saharan African countries from year 1996 to 2019. To investigate the relationship, the study applied the Panel Vector Autoregressive (P-VAR) model. The results from the grangerGranger-causality test show a unidirectional relationship running from economic complexity to inclusive growth, the panel VAR model reveals that economic complexity has a negative and significant effect on inclusive growth at 10 percent level of significance in Sub Sub-Saharan Africa. The present study investigated five objectives, and out of the five objectives, only two (i.e., Welfare and Good Governance ) have a positive and significant relationship with economic complexity in the long long-run. This implies that with more productive structures, these countries would be in a better position to promote institutional quality and later advance welfare regimes in Sub Sub-Saharan Africa. However, for that goal to be realized, the Sub-Saharan African region should first achieve, or have, a certain level of economic development. , Thesis (PhD) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2024
- Full Text:
- Date Issued: 2024-04
The impact of domestic investment on economic growth in South Africa: a Sectoral Approach (1993 to 2020)
- Hobongwana, Khungile Goodwell https://orcid.org/0000-0003-0223-7370
- Authors: Hobongwana, Khungile Goodwell https://orcid.org/0000-0003-0223-7370
- Date: 2023-01
- Subjects: Economic development -- South Africa , Investments -- South Africa , Gross domestic product
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/26753 , vital:65982
- Description: This study examined the impact of domestic investment on economic growth in South Africa: a sectoral approach from 1993 to 2020. The overall results as discussed by panel data ARDL revealed that domestic investment has an impact on at least one sectoral economic growth in South Africa in the long run. The panel data ARDL test reveals that domestic investment, employment, imports and exports have a significant correlation to influence GDP in the long run in at least one of the sectors. A pairwise Dumitrescu Hurlin panel causality tests determine that domestic investment (DI) does not homogeneously cause gross domestic product (GDP). This is because in South Africa the sectoral or structural change development relies much on foreign direct investment (FDI) rather than domestic investment, hence the negative homogeneous results. Therefore, we need to attract DI as the result shows, because a positive relationship can be expected between domestic investment and economic growth in line with the Keynesian theory where investment is expected to promote economic growth. The new-endogenous growth theory of investment that can be applied in detecting the effect of aggregate and disaggregate domestic investment on sectoral economic growth and aggregate economic growth. , Thesis (MCom) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-01
- Authors: Hobongwana, Khungile Goodwell https://orcid.org/0000-0003-0223-7370
- Date: 2023-01
- Subjects: Economic development -- South Africa , Investments -- South Africa , Gross domestic product
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/26753 , vital:65982
- Description: This study examined the impact of domestic investment on economic growth in South Africa: a sectoral approach from 1993 to 2020. The overall results as discussed by panel data ARDL revealed that domestic investment has an impact on at least one sectoral economic growth in South Africa in the long run. The panel data ARDL test reveals that domestic investment, employment, imports and exports have a significant correlation to influence GDP in the long run in at least one of the sectors. A pairwise Dumitrescu Hurlin panel causality tests determine that domestic investment (DI) does not homogeneously cause gross domestic product (GDP). This is because in South Africa the sectoral or structural change development relies much on foreign direct investment (FDI) rather than domestic investment, hence the negative homogeneous results. Therefore, we need to attract DI as the result shows, because a positive relationship can be expected between domestic investment and economic growth in line with the Keynesian theory where investment is expected to promote economic growth. The new-endogenous growth theory of investment that can be applied in detecting the effect of aggregate and disaggregate domestic investment on sectoral economic growth and aggregate economic growth. , Thesis (MCom) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-01
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