Amavilah, Voxi Heinrich (2007): The effects of technology-as-knowledge on the economic performance of developing countries: An econometric analysis using annual publications data for Botswana, Namibia, and South Africa, 1976-2004.
Download (267kB) | Preview
Extant literature indicates that technology, and by implication its underlying knowledge base, determines long-run economic performance. Absent from the literature with respect to developing countries are quantitative assessments of the nexus between technology as knowledge and economic performance. This paper imposes a simple production function on annual pooled observations on Botswana, Namibia, and South Africa over the 1976-2004 period to estimate the marginal impacts of technology as knowledge on economic performance. It finds that capital (k), openness to trade (τ), and even the share of government expenditure of GDP (G) among other factors, influence economic performance. However, the economic performance of countries like Botswana, Namibia, and South Africa depends largely on technology, technological change, and the basic knowledge that forms the foundation for both. For instance, measured as a homogenous “manna from heaven”, technology is the strongest determinant of real per capita income of the three nations. The strength of technology as a determinant of performance depends on the knowledge underpinnings of technology measured as the number of publications (Q, q). Both Q and q are strongly correlated with the countries’ performance. This suggests that the “social capability” and “technological congruence” of these countries are improving, and that developing countries like Botswana, Namibia, and South Africa gain from increased investment in knowledge-building activities including publishing. Obviously there is room for strengthening results, but this analysis has succeeded in producing a testable hypothesis.
|Item Type:||MPRA Paper|
|Institution:||REEPS & GCC|
|Original Title:||The effects of technology-as-knowledge on the economic performance of developing countries: An econometric analysis using annual publications data for Botswana, Namibia, and South Africa, 1976-2004|
|Keywords:||knowledge; technology; economic performance|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D80 - General
O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa
C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D83 - Search ; Learning ; Information and Knowledge ; Communication ; Belief ; Unawareness
C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models
I - Health, Education, and Welfare > I2 - Education and Research Institutions > I29 - Other
|Depositing User:||Voxi Heinrich Amavilah|
|Date Deposited:||11. Jun 2007|
|Last Modified:||25. Mar 2015 13:16|
Abramovitz, M. (1986) Catching up, forging ahead, and falling behind, Journal of Economic History, 46:2, pp. 385-406.
Abramovitz, M. (1979) Rapid growth potential and its realization: The experience of capitalist economies in the postwar period, in E. Malinvaud (Ed.) Economic Growth and Resources. New York: St. Martin’s Press.
Acemoglu, D., S. Johnson, and JA Robinson (2001a) African success story: Botswana, MIT Department of Economics Working Paper No. 01-37. Available at SSRN: http://ssrn.com/abstract=290791.
Acemoglu, D., Johnson, and Robinson (2001b) The colonial origins of comparative development: an empirical investigation, American Economic Review 91 (5): 1369-1401.
Acemoglu, D., Johnson, and Robinson (2002) Reversal of fortunes: Geography and institutions in the making of the modern world income distribution, Quarterly Journal of Economics (November): 1131-1295.
Akerlof, G. (2007) The missing motivations in macroeconomics, American Economic Review, Vol. 97(1), pp. 5-36.
Amavilah, VHS (2005a) Resource intra-actions and interactions: Implications for technological change and economic growth, Working Paper 2005(3). Available at: http://126.96.36.199/eps/ge/papers/0508/0508004.pdf
Amavilah. V.H. (2005b) The National Wealth of Selected Countries - A Descriptive Essay,Discussion Paper 2005(4). Available at: http://ideas.repec.org/p/wpa/wuwpdc/0508007.html.
Amavilah, V.H.S. (2006a) Institutional Change and Economic Performance: An Off-the-Cuff Comment on Professors Daron Acemoglu, Simon Johnson and James Robinson's Three Papers. Available at SSRN: http://ssrn.com/abstract=911324.
Amavilah, VHS (2006a) Intensity of technology use and per capita real GDP across some African countries. Available at: http://mpra.ub.uni-muenchen.de/1675/.
Amavilah, VHS and RT Newcomb (2004) Economic growth and financial economics of capital accumulation under shifting technological change. Available at: http://econopapers.repec.org/paper/wpawuwpdc/0505015.htm.
Amavilah, VHS (1998) Resource inefficiency and poor aggregate economic performance in African countries: The case of Namibia, 1968-1992. Working paper no. 12, Available at: http://188.8.131.52/eps/dev/papers/0307/0307005.pdf
Arora, V. And A. Vamvakidis (2005) The implications of South Africa economic growth for the rest of Africa, IMF Working Paper WP/05/58.
Artadi, E.V. and X. Sala-i-Martin (2003) The economic tragedy of the XXth Century: Growth in Africa, NBER Working Paper No. 9865 (July).
Aziakpono, M.J. (Undated) Financial development and economic growth in Southern Africa, Department of Economics, National University of Lesotho. Available at: https://www.oecd.org/dataoecd/38/12/30225204.pdf
Baltagi, BH (1999) Econometrics, 2nd revised edition. Springer-Verlag, New York. Chapter 12, pp. 307-330.
Barro, RJ (1999) Determinants of economic growth: Implications of the global evidence for Chile, Cuadernos de Economis, 36(107), pp. 443-478.
Barro, R. (1991) Economic growth in a cross section of countries, Quaterly Journal of Economics, Vol. CVI (2), pp. 407-443.
Becker, G.S. (1996) Human Capital, 3rd Editio, University of Chicago Press, Chicago.
Benhabib, J. and MM. Spiegel (1994) The role of human capital in economic development: Evidence from aggregate cross-country data, Journal of Monetary Economics, 34, pp. 143-173.
Bernard, AB and CI Jones (1995) Technology and convergence.The Economic Journal, Vol. 106, No. 437 (Jul., 1996), pp. 1037-1044 (I read Version 1.20).
Bertocchi, G. And F. Canova (1996) Did colonization matter for growth? An empirical exploration into the historical causes of Africa’s underdevelopment. Available at http://ideas.repec.org/a/eee/eecrev/v46y2002i10p1851-1871.html.
Boulding, K.E. (1966) The economics of knowledge and the knoledge of economics: Richard T. Ely Lecture, American Economic Review, Vol. 56 (½), pp. 1-13.
Brooks, H. (1994) The relationship between science and technology, Research Policy, Vol. 23, pp.477-486.
Charrtrand, H.H. (2002) Knowledge-based economy: Literature search by author. Available at: http://members.shaw.ca/compilerpress1/KBE%20Lit%20Search%20Author%201.htm.
Charrtrand, H.H. (2006) Ideological evolution: The competitiveness of nations in a global knowledge-based economy. An individual interdisciplinary studies PhD program, University of Saskatchewan, Available at: http://www.culturaleconomics.atfreeweb.com/Dissertation%204/0.0%2)ToC.htm.
Choi, (1983) Theories of comparative economic growth. Iowa State University Press, Ames.
Cipolla, C (1965) Guns, sails and empires: Technological innovation and the early phases of European expansion, 1400-1700. Minerva Press, New York.
Cohn, E. (1979) The Economics of Education, Ballinger Publishing Company, Cambridge (MA).
Collier, P. and W. Gunning (1999) Explaining African economic performance. Journal of Economic Literature, Vol. XXXVII (1), pp. 64-111.
Diamond, J. (1997) Guns, germs and steel: The fates of human socieities. W.W. Norton, New York.
Driouchi, A., E.M. Azelmad, and GC Anders (2006) An economic analysis of the role of knowledge in economic performance. Journal of Technology Transfer, 31, pp. 241-255.
Easterly, W. And R. Levine (1997) Africa’s growth tragedy: Politics and ethnic divisions, Quarterly Journal of Economics, CXII (4)m pp. 1203-
Fafchamps, M. (2000) Engines of growth and Africa’s economic performance, Department of Economics, University of Oxford. (Revised July).
Fagerberg, J. (1995) Convergence or divergence: The impact of technology on “ehy growth rates differ”, Journal of Evolutionary Economics, Vol. 5 (3), pp.269-284.
Fagerberg, J., M. Knell, and M. Srholec (2004) The competitiveness of nations: economic growth in the ECE region. Available at: http://www.unece.org/ead/sem/sem2004/papers/Fagerberg.pdf.
Fagerberg, J. (1994) Technology and international differences in growth rates, Economic Literature, Vol. 32(3), pp. 1147-1175.
Fedderke, J. (2001) Technology, human capital and growth: Evidence from a middle-income country case study applying dynamic heterogeneous panel analysis, 2001 Annual Forum, ERSA, University of Witwatersrand, South Africa (September 10-12).
Gurak, H. (2004) On Productivity Growth, ICS Stockholm.
Henderson, J.M. and R.E. Quandt (1980) Microeconomic theory: A mathematical approach. McGraw-Hill International Book Company.New York.
Henderson, W.O. (1969) The industrialization of Europe, 1780-1914. Harcourt, Brace, and World Inc. (1970 reprint).
Heston, A., R. Summers, and B. Aten (2006) Penn World table, Version 6.2, Center for International Comparisons of production, income and prices at the University of Pennsylvania (September).
Higgins, M.J. and D. Levy, AT Young (2006) Growth and convergence across the Unites States: Evidence from county-level data, Reveiw of Economics and Statistics, Vol LXXXVIII, No. 4. pp. 671-681.
Islam, N. (2004) The new growth theories: What is in there for developing countries? Journal of developing Areas, 38(1), pp. 170-210.
Islam, N. (1995) Growth empirics: A panel data approach. Quarterly Journal of Economics, CX (4), pp. 1127-1170.
Jones, B. (2002) Economic integration and convergence of per capita income in West Africa. African Development Bank, pp. 18-47.
Jones, C.I. (1997) Convergence revisited Journal of Economic Growth, 2(2), pp. 131-153.
Jones, C.I (2006) Knowledge and the theory of economic development. Department of Economics, UC Berkeley. Available at: http://www.econ.berkeley.edu~chad
Kay, J. (2005?) Culture and prosperity: Why some nations are rich but most remain poor. HarperBusiness, New York. Part IV, pp. 266-274.
Keynes, JM (1973) The collected works of JM Keynes, Volume III: A treatise on probability. St. Martin’s Press. New York.
Kmenta, J. (1986) Elements of Econometrics, 2nd Edition, Macmillan, New York. Chapter 12, pp. 616-635.
Kneller, R. and P.A. Stevens (2006) Frontier technology and absorptive capacity: Evidence from OECD manufacturing industries, Oxford Bulletin of Economics and Statistics, Vol. 68(1), pp. 1-21.
Landes, D. (1998). The wealth and poverty of nations : why some are so rich and some so poor. Little, Brown New York.
Lange, M.K. (2004) British colonial legacies and political development, World Development 32(6): 905-922.
Lange, G-M. (2004) Wealth, Natural capital, and sustainable development: Cotrasting examples from Botswana and Namibia, Environmental and Resource Economics 29, pp. 257-283.
Lee, J-W. (1996) Government interventions and productivity growth, Journal of Economic Growth, Vol. 1 (3), pp. 391-414.
Lerner, M. (1939) Ideas are weapons: The history and uses of idea, Viking Press, New York.
Levine, DL (1995) Wealth and freedom: An introduction to political economy. Cambridge University Press.
Lewin, KM. (2000) Knowledge matters for development. Professorial Lecture. University of Sussex. Available at: http://www.sussex.ac.uk/education/documents/knowledge_matters_for_development.pdf
Lewis, W.A (1965) The Theory of Economic Growth, Harper Torchbooks, New York
Loasby, B.J. (1998) The organization of capabilities, Journal of Economic Behavioor and Organization, Vol. 35, pp. 139-160.
Loasky, B.J. (1999) Knowledge, Institutions, and Evolution in Economics, The Graz Schumpeter Lectures, Routledge,. London, Chapter 1.
Lucas, R (1993) Making a miracle, Econometrica, 61(2), pp. 251-272.
Lucas, R (1988) On the mechanics of economic development, Journal of Monetary Economics, 22(1), , pp. 2-42.
Mankiw, NG, D, Romer, and DN Weil (1992) A contribution to the empirics of economic growth, Quarterly Journal of Economics, CVII (2), pp. 407-437.
Marope, M.T. (2005) Namibia: Human capital and knowledge development for economic growth with equity, Working Paper Series No. 84, Africa Region Human Development, World Bank, Washignton D.C.
Masanjala, W.H. and C. Papageorgiu (2006) Initial conditions, European colonialsm and Africa’s growth. Working Paper 2006-01. Department of Economics Working Paper Series. Available at http://www.lsu.edu/economics/papers/pap06_01.pdf.
Mauro, P. (1998) Corruption: Causes, Consequences, and agenda for further research, Finance and Development, (March), pp. 11-14.
Mauro, P. (1995) Corruption and growth, Quaterly Journal of Economics, Vol. 110(3), pp. 681-712.
Meadow, CT (1992) Text information retrieval systems. Academic Press, Inc. San Diego/New York.
Mokyr, J. (2005) Long-term economic growth and history of technology. In: Handbook of Economic Growth, Volume 1B. Edited by P. Aghion and SN Durlauf. Elsevier, New York.
Mueller, D.C. (1983) The political economy of growth. Yale University Press, New Haven.
Nelson, R.R. (2002) Technology, Institutions, and innovation systems, Policy Research 31(2), pp. 262-272.
Nepembe, M., M. Mabvuto, and A. Chaka (2007) Comparing retail banking changes in Namibia, South Africa and Botswana, Nepru Policy Brief, Issue 19, 5 pp.
Nicolson, S. and I. Tjizake (Undated) Namibian research capacity: An analysis and recommendations. Directorate of Research, Science and technology, Ministry of Higher Education, Training and Employment Creation, Windhoek.
North, DC. (1966) The economic growth of the United States, 1790-1860. W.W. Norton and Company, New York.
Nunn, N. (2005) Historical lagacies: A model linking Africa’s past to its current underdevelopment. Working Paper, Department of Economics, University of British Columbia. Available at http://ideas.repec.org/p/wpa/wuwpdc/0508008.html .
Nunn, N. (2004) Slavery, institutional development, and long-run growth in Africa, 1400-200. Available at: http://ideas.repec.org/p/wpa/wuwpit/0411007.html .
Parente, and E. Prescott (1994) Barriers to technology adoption and development, JPE, 102(2), pp. 298-321.
Persson, T. (2005) Forms of democracy, policy and economic development. Institute for International Economic Studies, Stockholm University. Available at http://www.iies.su.se/~persson/.
Romer, P.M. (1989) Human capital and growth: Theory and evidence. NBER Working Paper 3173. National Bureau of Economic Research, Inc.
Romer, PM (1993) Idea gaps and object gaps in economic development, Journal of Monetary Economics, 32(3): 543-573.
Romer, PM (1990) Endogenous technological change, Journal of political economy, 98(5): S71-S102.
Rosenberg, N. (1982) Inside the black-box: Technology and economics. Cambridge University Press. New York.
Russell, B. (1956) Logic and Knowledge: Essays 1901-1950, Capricorn Books (Ed. Robert C. Marsh), New York.
Russell, B. (1948) Human Knowledge: Its Scope and Limits, Simon and Schuster, New York.
Sachs, J.D. and A.M. Warner (1997) Sources of slow growth in African Economies, Journal of African Economies, Vol. 6(3), pp. 335-376.
Sampat, BN (2006) The dismal science and the endless frontier. Available at: http://www.tpac.gatech.edu/nsfworkshop/essays/Sampat.pdf.
Sampat, BN (2005), The dismal science and the endless frontier: How and why economists think about S &T policy: A guide for further reading. Available at: http://ideas.repec.org/p/wpa/wuwpit/0411007.html.
Samuelson, L. (2004) Modeling knowledge in economic analysis, Journal of Economic Literature XLII (2): 367-403.
Schultz, T.W. (1981) Investing in People: The Economics of Population Quality, University of California Press, . Berkeley.
Schumpeter, JA. (1950) Capitalism, Socialism and democracy, 3rd Edition.Harper Torchbooks New York.
Smith, A (1976) An inquiry into the nature and causes of the wealth of nations, Edwin Cannan (Ed.), University of Chicago Press.
Solow, RM (1956) A contribution to the theory of economic growth, Quarterly Journal of Economics, LXX: pp. 65-94.
Solow, RM (1957) Technical change and the aggregate production function, Review of Economics and Statistics, 39, pp. 312-320
Sowell, T. (1996) Knowledge and Decisions, BasicBooks, New York.
Stigler, G.J. (1984) The intellectual and the marketplace, Enlarged Edition. Harvard University Press. Cambridge (MA).
Stiglitz, J.E. (2000) The contributions of the economics of information to twentieth century economics, Quarterly Journal of Economics, (November), pp. 1441-1477.
Stiglitz, J.E. (1986) Economics of information and the theory of economic development. NBER Working Paper Series, Vol. W1566. Available at SSRN: http://ssrn.com/abstract=336315.
Swan, T (1956) Economic growth and capital accumulation, Economic Record, 32, pp. 334-361.
Swan, T (2002) Economic growth, Economic Record, 78, pp. 375-380..
Thirlwall, A.P. Growth and Development, 2nd Edition, Macmillan Press Ltd., London.
Von Hayek, F.A. (1974) The pretence of knowledge - Nobel Memorial Lecture, American Economic Review, Vol 79 (6), pp. 3-7.
von Hayek, F.A. (1937) Economics and knowledge, Economica (New Series), Vol. 4(13), pp. 33-54.
von Bertalanffy, L. (1968) General system theory: Foundations, Development, Applications, revised edition George Braziller. New York.
Warsh, D. (2006) Knowledge and the wealth of nations: A story of economic discovery. W.W. Norton and Company. New York.
Whitehead, AN. (1929) The Aims of Education and other essays. Free Press, New York.
World Bank, Country classification, Data and Statistics. Available at http?//web.worldbank.org/WEBSITE/EXTERNAL/DATASTATISTICS/
World Bank (1989) Sub-Saharan Africa: From Crisis to Sustainable Growth: A Long-Term Perspective Study, World Bank, Washington D.C.
World Bank (2001) A chance to learn: Knowledge and finance for education in Sub-Saharan Africa, Fille Copy 22005, African Region Human Development Series, Washington DC.