Trade liberalization and technology absorption in a less developing country context

Alamedin Bannaga

International Journal of Development Issues, 2015, vol. 14, issue 2, 149-170

Abstract: Purpose - – The paper aims to investigate the relationship between trade liberalization and technology absorption in a less developing country context. The objective is to empirically test the relationship between these two variables. This analysis was conducted in Sub-Saharan African economies. Design/methodology/approach - – A panel regression of 20 countries in Sub-Saharan Africa was estimated based on a model that takes into account both trade policy and non-policy factors affecting technology absorption. Findings - – A positive and significant relationship was found between trade liberalization and technology absorption. This relationship is valid across a variety of model specifications, technology absorption proxies and estimation techniques. Moreover, non-policy factors such as geographical spillover play significant role in technology absorption. Originality/value - – The paper examines the link between the trade liberalization and the technology absorption in Sub-Saharan Africa. The analysis is empirical in nature and builds on panel estimations. The novelty of the paper comes from the topic investigated and the focus on a region which has not attracted much attention in the literature.

Keywords: Sub-Saharan Africa; Technology absorption; Empirical evidence; Trade liberalization; O24; O3; F63; F14 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijdipp:v:14:y:2015:i:2:p:149-170

DOI: 10.1108/IJDI-12-2014-0085

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