Many Developed and Newly Industrialized Countries were able to achieve sustainable economic development through innovation, invention, and creation of new technology. However, African countries have experience slow economic progress and one of the causes has been attributed to poor technological creation capacity. Endogenous growth theory posits a strong relationship between technology or knowledge accumulation and economic development. The theory shows that economic progress is positively affected by technological innovation and investment in human capital. Technological advancement has been observed to promote international trade by creating varieties of consumer and industrial goods and enhance competitiveness in the international market. The contribute to existing literature by examining the effect of technological creation on international trade and economic development using a Generalized Method of Moments technique on a sample of thirty selected African countries. Diverse evidences were obtained based on the various indicators of technological innovation used. The influence of innovation measured by number of patent rights, research and development expenditure on international trade was positive. This suggest that technological advancement protected by patent improve trade in Africa. Additionally, it was evident that research and development expenditure promote trade and economic development in the continent. Appropriate laws and regulation are necessary to stimulate the positive effect of patent registration on trade. Substantial increase in research and development expenditure is required to achieve a greater stride of economic development in Africa.

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Technology Creation, International Trade and Economic Development in Africa

  • Tanvir Mahmoud Hussein,
  • Dayo Benedict Olanipekun,
  • Jude U. Bassey,
  • Anumolu Goparaju

摘要

Many Developed and Newly Industrialized Countries were able to achieve sustainable economic development through innovation, invention, and creation of new technology. However, African countries have experience slow economic progress and one of the causes has been attributed to poor technological creation capacity. Endogenous growth theory posits a strong relationship between technology or knowledge accumulation and economic development. The theory shows that economic progress is positively affected by technological innovation and investment in human capital. Technological advancement has been observed to promote international trade by creating varieties of consumer and industrial goods and enhance competitiveness in the international market. The contribute to existing literature by examining the effect of technological creation on international trade and economic development using a Generalized Method of Moments technique on a sample of thirty selected African countries. Diverse evidences were obtained based on the various indicators of technological innovation used. The influence of innovation measured by number of patent rights, research and development expenditure on international trade was positive. This suggest that technological advancement protected by patent improve trade in Africa. Additionally, it was evident that research and development expenditure promote trade and economic development in the continent. Appropriate laws and regulation are necessary to stimulate the positive effect of patent registration on trade. Substantial increase in research and development expenditure is required to achieve a greater stride of economic development in Africa.