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

Forthcoming: Information Development, Volume, 36 issue: 1, page(s): 128-152 (March, 2020).

45 Pages Posted: 25 Jan 2019 Last revised: 6 Mar 2020

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Voxi Heinrich S. Amavilah

REEPS

Antonio Rodriguez

VSB - Technical University of Ostrava

Date Written: January 22, 2019

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

JEL Classification: L59; O10; O30; O20; O55

Suggested Citation

Asongu, Simplice and Amavilah, Voxi Heinrich S. and Rodriguez, Antonio, Business Dynamics, Knowledge Economy, and the Economic Performance of African Countries (January 22, 2019). Forthcoming: Information Development, Volume, 36 issue: 1, page(s): 128-152 (March, 2020).. Available at SSRN: https://ssrn.com/abstract=3320322 or http://dx.doi.org/10.2139/ssrn.3320322

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Voxi Heinrich S. Amavilah

REEPS ( email )

P.O. Box 38061
Phoenix, AZ 85069-8061
United States

Antonio Rodriguez

VSB - Technical University of Ostrava ( email )

Ostrava
Czech Republic

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