Institutions, governance and technology catch-up in North Africa

Imed Drine ()

Economic Modelling, 2012, vol. 29, issue 6, 2155-2162

Abstract: This paper aims to analyse the effects of institution quality on technology catch-up in five North African countries (Algeria, Egypt, Morocco, Sudan and Tunisia) compared to 3 groups of developing and emerging countries (Sub Saharan Africa, Asia, and Latin America) over the period 1970–2005. The study adopts a two-stage methodology. First, we estimate the technology gap using the metafrontier approach. Then we test the relationship between the technology gap and the quality of governance. The empirical results show that institutions (corruption, law and rules and investment climate) are very important in closing the technology gap and speeding up the technology catch-up. Other determinants of the technology gap are also identified: foreign direct investment, human capital and trade.

Keywords: Metafrontier; Technology gap; Catching-up; Efficiency; Stochastic frontier; Governance; North Africa (search for similar items in EconPapers)
JEL-codes: C33 K49 O1 O47 O57 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:6:p:2155-2162

DOI: 10.1016/j.econmod.2012.05.038

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