Template-type: ReDIF-Paper 1.0
Author-Name: Habiyaremye, Alexis
Author-Email: habiyaremye@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Ziesemer, Thomas
Author-Email: ziesemer@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title:Absorptive Capacity and Export Diversification in Sub-Saharan African Countries 
Abstract: This paper examines the extent to which dependence on primary
	 commodities in Sub-Saharan African(SSA) countries can be explained by
	 low levels of absorptive capacity (the ability to acquire, internalize
	 and utilize knowledge developed elsewhere). We examine the individual
	 and combined effects of various indicators of absorptive capacity on
	 export diversification. We test the significance of these effects on a
	 sub-sample consisting of SSA countries and a sample of other developing
	 countries. Our results show that the association between higher levels
	 human capital and basic infrastructure -two crucial components of
	 absorptive capacity -with more export diversification is subject to
	 threshold level effects, while the abundance of natural resources turns
	 out to be impeding diversification in SSA. These results imply that SSA
	 countries need to substantially increase their investments in basic
	 infrastructure as well as reinforce the accumulation pace of human and
	 physical capital to allow active technological learning and reduce their
	 dependence on primary commodities.   
Classification-JEL: O13, O33, O55
Keywords: absorptive capacity, human capital, capital accumulation,
	 export diversification, Sub-Saharan Africa. 
Series: UNU-MERIT Working Papers
Creation-Date: 2006
Number: 030
File-URL: http://www.merit.unu.edu/publications/wppdf/2006/wp2006-030.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2006030