How trade participation fuels innovation in Africa: Unveiling insights through empirical analysis
By utilising a nonstationary heterogeneous approach to uncover the dynamics between foreign trade participation and innovation levels in developing economies, this empirical study investigates how trade participation fuels innovation in 25 selected African countries. The African continent i...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics, Belgrade
2024-01-01
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| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | https://doiserbia.nb.rs/img/doi/0013-3264/2024/0013-32642443093I.pdf |
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| Summary: | By utilising a nonstationary heterogeneous approach to uncover the dynamics
between foreign trade participation and innovation levels in developing
economies, this empirical study investigates how trade participation fuels
innovation in 25 selected African countries. The African continent is
experiencing significant economic growth and globalisation, making it
essential to understand the potential linkages between international trade
and innovation. Using a dynamic fixed effect estimator within the framework
of nonstationary heterogeneous panel models on panel data of 25 African
countries from 1996 to 2021, the study revealed that national income
significantly influences both exports and imports in the region. The study
also identified bidirectional causal links between industrial design
applications, patents, and trademarks with exports and imports, highlighting
the symbiotic relationship between innovation and trade engagement.
Successful exports are found to foster investments in design, patents, and
branding. Recommendations on the basis of these findings include fostering
innovation ecosystems through research institutes and collaborations,
developing balanced trade policies to support domestic industries and SMEs,
offering incentives for research and development, and strengthening trade
promotion agencies to assist businesses in navigating international markets,
identifying trade opportunities, and addressing export-import challenges. |
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| ISSN: | 0013-3264 1820-7375 |