Economic complexity to boost the selected sub-Saharan African economies

Journal of Economic and Financial Sciences


 
 
Field Value
 
Title Economic complexity to boost the selected sub-Saharan African economies
 
Creator Ncanywa, Thobeka Mongale, Itumeleng P. Ralarala, Ombeswa Letsoalo, Thabiso E. Molele, Brian S.
 
Subject economic complexity; inequality; panel auto-regressive distributive lag; sub-Saharan Africa; GINI; exports
Description Orientation: Economic complexity is a measure of productive capabilities indirectly by looking at the mix of sophisticated products that countries export. The economic complexity index proposed a proxy for diversity and ubiquity of products in the export basket.Research purpose: This study seeks to determine if economic complexity can influence the inequality measured by the Gini index in some selected sub-Saharan African countries.Motivation for the study: The need for the study emanates from the notion that that economic complexity can reduce income inequality hence it is imperative to investigate this relationship in the sub-Saharan African region where most countries produce few sophisticated goods that are also labour-intensive. Inadequate literature within the African continent has also contributed to the formulation of this study.Research approach/design and method: This study employed the autoregressive distribution lag (ARDL) model to analyze a panel data set, which includes eight sub-Saharan African countries for the period 1994–2017.Main findings: We found that economic complexity can reduce income disparities.Practical/managerial implications: Sub-Saharan African countries should shift their productive capabilities and resources from primary to sophisticated products in the manufacturing and services sector to increase economic complexity and reduce inequality.Contribution/value-add: The study makes an important contribution to the debate about the relationship between economic complexity and income inequality in the sub-Saharan African context and it is envisaged that it will inform the actions of the decision-makers to drive future productivity and prosperity in the region.
 
Publisher AOSIS
 
Contributor
Date 2021-05-13
 
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion —
Format text/html application/epub+zip text/xml application/pdf
Identifier 10.4102/jef.v14i1.567
 
Source Journal of Economic and Financial Sciences; Vol 14, No 1 (2021); 8 pages 2312-2803 1995-7076
 
Language eng
 
Relation https://jefjournal.org.za/index.php/jef/article/view/567/1236 https://jefjournal.org.za/index.php/jef/article/view/567/1235 https://jefjournal.org.za/index.php/jef/article/view/567/1237 https://jefjournal.org.za/index.php/jef/article/view/567/1234
 
Rights Copyright (c) 2021 Thobeka Ncanywa, Itumeleng P. Mongale, Ombeswa Ralarala, Thabiso E. Letsoalo, Brian S. Molele https://creativecommons.org/licenses/by/4.0