Business Dynamics, Knowledge Economy, and the Economic Performance of African Countries

Simplice Asongu, Voxi Heinrich Amavilah and Antonio Andres

MPRA Paper from University Library of Munich, Germany

Abstract: This paper develops a framework (a) to examine whether or not the African business environment hinders or promotes the knowledge economy (KE), (b) to determine how the KE affects economic performance, and (c) how economic performance relates to the inequality-adjusted human socioeconomic development (IHDI) of 53 African countries during the 1996-2010 time period. We estimate the linkages with three related equations. The results support a strong correlation between the dynamics of starting and doing business and variations in KE. The results also show that there exists a weak link between KE and economic performance. Nonetheless, KE-influenced performance plays a more important role in socioeconomic development than some of the conventional control variables like foreign direct investment (FDI), foreign aid, and even private investment.

Keywords: Business Dynamics; Knowledge Economy; Economic Performance, Instrumental Variables; Panel Data; Inclusive Growth and Development; Sub-Saharan Africa (search for similar items in EconPapers)
JEL-codes: L96 O10 O20 O30 O55 (search for similar items in EconPapers)
Date: 2019-01
New Economics Papers: this item is included in nep-afr and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Business Dynamics, Knowledge Economy, and the Economic Performance of African Countries (2019)
Working Paper: Business Dynamics, Knowledge Economy, and the Economic Performance of African Countries (2019)
Working Paper: Business Dynamics, Knowledge Economy, and the Economic Performance of African Countries (2019)
Working Paper: Business Dynamics, Knowledge Economy, and the Economic Performance of African Countries (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:93236

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