Export diversification and economic growth

Published: 5 August 2022| Version 1 | DOI: 10.17632/j8hvpnstyk.1


The dataset was utilised to examine the impact of export diversification on economic growth in Sub-Saharan Africa. A total of 43 countries over a period of 19 years were taken into account. The research hypothesis for this study is: Export concentration constrains economic growth in Sub-Saharan Africa. The data for macroeconomic variables considered in the study were drawn from the World Development Indicators' database. Then data for measuring the extent of export diversification were drawn from the International Monetary Funds' Herfindahl-Hirschman Index database. Lastly, data to measure the quality of governance were drawn from the Worldwide Governance Indicators' database. The study measured the log of GDP per capita growth as the dependent variable- and export diversification and, governance index (index of the six components of governance), foreign direct investment, domestic investment as the main explanatory variables - whereas trade policy, trade openness were included as control variables. Furthermore, the study tested for a u-shaped pattern between export diversification and economic growth in the region and thus an additional variable was included InExDsq to achieve this objective. The results suggest that export diversification is still low in Sub-Saharan Africa and consequently impact negatively on economic growth in the region. This is evidenced by the negative coefficient of export diversification.



University of the Witwatersrand


Development of Economics