How are Economic Governance Institutions Moderating the Effect of Economic Complexity on Trade, FDI Inflow, Environmental Degradation, and Economic Growth in Africa?

IF 4 3区经济学 Q1 ECONOMICS

Journal of the Knowledge Economy Pub Date : 2024-08-20 DOI:10.1007/s13132-024-02284-2

Christian Agu, Jonathan Emenike Ogbuabor, Benjamin Udoka Onah

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Abstract

Available literature shows that the economic structure of countries can influence trade, foreign direct investment (FDI) inflow, environmental degradation, and economic growth across nations. However, this literature is scarce in Africa. Besides, economic governance institutions are important factors that may affect growth. Hence, this paper investigates how economic governance institutions are moderating the effect of economic complexity on trade, FDI inflow, environmental degradation, and economic growth in Africa from 2000 to 2020. Employing the system GMM and marginal effect techniques, our results show that: (i) economic governance institutions provide important channels through which economic complexity drives trade, FDI inflow, and economic growth in Africa; and (ii) governance institutions in Africa moderate the effect of economic complexity on the environment by stimulating economic activities that lead to higher carbon dioxide emissions as a byproduct of growth. Overall, we find evidence that improved governance institutions in Africa are capable of intensifying trade, attracting more FDI, and spurring economic growth. The study made some insightful policy recommendations based on these findings.

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经济治理机构如何调节经济复杂性对非洲贸易、外国直接投资流入、环境退化和经济增长的影响？

现有文献表明，国家的经济结构可以影响各国的贸易、外国直接投资（FDI）流入、环境退化和经济增长。然而，非洲的相关文献却很少。此外，经济治理机构也是可能影响经济增长的重要因素。因此，本文研究了经济治理机构如何调节经济复杂性对 2000-2020 年非洲贸易、外国直接投资流入、环境退化和经济增长的影响。利用系统 GMM 和边际效应技术，我们的研究结果表明(i) 经济治理机构提供了经济复杂性推动非洲贸易、外国直接投资流入和经济增长的重要渠道；(ii) 非洲的治理机构通过刺激经济活动来缓和经济复杂性对环境的影响，而经济活动作为增长的副产品会导致更高的二氧化碳排放。总之，我们发现有证据表明，非洲治理机构的改善能够加强贸易、吸引更多外国直接投资并刺激经济增长。研究根据这些发现提出了一些有见地的政策建议。

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来源期刊

Journal of the Knowledge Economy ECONOMICS-

CiteScore

5.90

自引率

27.30%

发文量

228

期刊介绍： In the context of rapid globalization and technological capacity, the world’s economies today are driven increasingly by knowledge—the expertise, skills, experience, education, understanding, awareness, perception, and other qualities required to communicate, interpret, and analyze information. New wealth is created by the application of knowledge to improve productivity—and to create new products, services, systems, and process (i.e., to innovate). The Journal of the Knowledge Economy focuses on the dynamics of the knowledge-based economy, with an emphasis on the role of knowledge creation, diffusion, and application across three economic levels: (1) the systemic ''meta'' or ''macro''-level, (2) the organizational ''meso''-level, and (3) the individual ''micro''-level. The journal incorporates insights from the fields of economics, management, law, sociology, anthropology, psychology, and political science to shed new light on the evolving role of knowledge, with a particular emphasis on how innovation can be leveraged to provide solutions to complex problems and issues, including global crises in environmental sustainability, education, and economic development. Articles emphasize empirical studies, underscoring a comparative approach, and, to a lesser extent, case studies and theoretical articles. The journal balances practice/application and theory/concepts.