Trade integration and technological difussion. The Sub-Saharan Africa Experience

The main objective of this article is the analysis of the economic effects of
trade integration in Sub-Saharan Africa. We define a theoretical model that use
the Mankiw, Romer and Weil (1992) background, and includes trade openness
as a key variable to absorb the technology generated by developed countries
in the technological threshold. Not only are domestic factors considered, but
also the economic performance of the most developed countries around the
world. These predictions are tested using GMM technique in a panel data performed
on a sample of 22 countries belonging to the Sub-Saharan region over
the period 1970-2003. The estimations confirm that Africa’s growth rates are
positively related to investment and human capital accumulation. Greater integration
and economic freedom in internal and external markets are the key to
a sustainable growth rate. GDP growth per capita in OECD countries generates
positive externalities in the Sub-Saharan region, by activating external demand
and technological diffusion.
Adolfo C . Fernández Puente
Patricio Pérez González
Marta Bengoa Calvo
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