Modeling the future of knowledge economy: evidence from SSA and MENA countries

Asongu, Simplice A (2013): Modeling the future of knowledge economy: evidence from SSA and MENA countries. Published in: Economics Bulletin , Vol. 33, No. 1 (5 March 2013): pp. 612-624.

Abstract

This paper projects the future of knowledge economy (KE) in SSA and MENA countries using the four components of the World Bank’s Knowledge Economy Index (KEI): economic incentive, education, ICTs and innovation. The empirical evidence provides the speeds of integration as well as the time necessary to achieve full integration. Findings broadly indicate SSA and MENA countries with low levels in KE will catch-up their counterparts with higher levels in a horizon of 4 to 7.5 years.

• Item Type: MPRA Paper
• Language: English
• Keywords: Knowledge economy; Principal Component Analysis; Panel data; Convergence
• Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F42 - International Policy Coordination and Transmission; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O38 - Government Policy; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries; P - Economic Systems > P0 - General; P - Economic Systems > P0 - General > P00 - General

References

African Development Bank (2007, December). “Growing a Knowledge Based Economy: Evidence from Public Expenditure on Education in Africa”, Economic Research Working Paper Series No. 88.

Amavilah, V. H., (2009). “Knowledge of African countries: production and value of doctoral dissertations,” Applied Economics, 41,(7-9), pp. 977-989.

Andrés, A. R., & Asongu, S. A., (2013). “Fighting software piracy: which governance tools matter for Africa?”, Journal of Business Ethics. http://link.springer.com/article/10.1007%2Fs10551-013-1620-7 (accessed: 15/01/2013).

Arellano, M., & Bond, S., (1991). “Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations”. The Review of Economic Studies, 58, pp. 277-297.

Arellano, M., & Bover, O., (1995). “Another look at the instrumental variable estimation of error-components models”, Journal of Econometrics, 68, pp. 29-52.

Askari, H., Atie, R., & Khouri, N., (2003). “Intra-middle eastern trade: why is it so low?”, BNL Quarterly Review, No. 226, pp. 1-32.

Asongu, S. A., (2012a). “Harmonizing IPRs on Software Piracy: Empirics of Trajectories in Africa”, Journal of Business Ethics: Forthcoming. http://link.springer.com/article/10.1007%2Fs10551-012-1552-7?LI=true#page-1 (accessed: 26/12/2012).

Asongu, S. A., (2012b). “Fighting software piracy in Africa: how do legal origins and IPRs protection channels matter?” Journal of the Knowledge Economy: Forthcoming. http://link.springer.com/article/10.1007/s13132-012-0137-0 (accessed: 26/12/2012).

Asongu, S. A., (2012c). “Financial sector competition and knowledge economy: evidence from SSA and MENA countries”, Journal of the Knowledge Economy: Forthcoming. http://link.springer.com/article/10.1007/s13132-012-0141-4 (accessed: 26/12/2012).

Asongu, S. A., (2013a). “‘The Knowledge Economy’-finance nexus: how do IPRs matter in SSA and MENA countries?”, Economics Bulletin, 33(1), pp. 78-94.

Asongu, S. A., (2013b). “Software piracy, inequality and the poor: evidence from Africa”, Journal of Economic Studies: Forthcoming.

Asongu, S. A., (2013c). “African Stock Market Performance Dynamics: A Multidimensional Convergence Assessment”, Journal of African Business: Forthcoming.

Asongu, S. A., (2013d). “African Financial Development Dynamics: Big Time Convergence”, African Journal of Economic and Management Studies: Forthcoming.

Asongu, S. A., (2013e). “Are Proposed African Monetary Unions Optimal Currency Areas? Real, Monetary and Fiscal Policy Convergence Analysis”, African Journal of Economic and Management Studies: Forthcoming.

Asongu, S. A., (2013f). “Real and Monetary Policy Convergence: EMU Crisis to the CFA Zone”, Journal of Financial Economic Policy: Forthcoming.

Aubert, J. E., (2005). “Knowledge economies: A global perspective”, In A. Bonfour & L. Edvinsson (Eds.), Intellectual capital for communities. Elsevier, Oxford.

Barro, R. J., & Sala-i-Martin, X., (1992). “Convergence”, Journal of Political Economy, 100, pp. 223-251.

Barro, R. J., & Sala-i-Martin, X., (1995). Economic Growth. The MIT Press, Cambridge, MA.

Bizri, O., (2009). “The Knowledge economy and the Arab Countries: current climate and future prospects in education, innovation and technology”, Carthage High Level International Conference on Building Knowledge Economies for job creation, increased competiveness and balanced development. December, 1-3, 2009.

Blundell, R., & Bond, S., (1998). “Initial conditions and moment restrictions in dynamic panel data models”, Journal of Econometrics, 87(1), pp.115-143.

Bond, S., Hoeffler, A., & Tample, J., (2001). “GMM Estimation of Empirical Growth Models”, University of Oxford.

Britz, J. J., Lor, P. J., Coetzee, I. E. M., & Bester, B. C., (2006). “Africa as a knowledge society: A reality check”, The International Information & Library Review, 38, pp. 25-40.

Chandra, D. S., & Yokoyama, K., (2011). “The role of good governance in the knowledge-based economic growth of East Asia – A study on Japan, Newly Industrialized Economies, Malaysia and China”, Graduate School of Economics, Kyushu University.

Chavula, H. K., (2010). “The Role of Knowledge in Economic Growth. The African Perspective”, ICT, Science and Technology Division (ISTD),United Nations Economic Commission for Africa (UNECA).

Costantini, M., & Lupi, C., (2005). “Stochastic Convergence among European Economies”, Economics Bulletin, 3(38), pp.1-17.

Fung, M. K., (2009). “Financial development and economic growth: convergence or divergence?”, Journal of International Money and Finance, 28, pp. 56-67.

Karagiannis, S., (2007, February). “The Knowledge-Based Economy, Convergence and Economic Growth: Evidence of the European Union”, Center of Planning and Economic Research. Working Paper No. 91.

Islam, N., (1995). “Growth Empirics: A Panel Data Approach”, The Quarterly Journal of Economics, 110, (4), pp. 1127-1170.

Iwamoto, W., (2005). “Secondary Education Reform: Towards a Convergence of Knowledge Acquisition and Skills Development”, UNESCO, ED-2005/WS/37.

Lightfoot, M., (2011). “Promoting the Knowledge Economy in the Arab World”, London Knowledge Lab, Institute of Education.

Longo, R., & Sekkat, K., (2004). “Economic Obstacle in Explaining Intra-African Trade”, World Development, 32 (8), pp. 1309-1321.

Jolliffe, I. T., (2002). Principal Component Analysis (2nd Ed.), New York: Springer.

Kaiser, H. F., (1974). “An index of factorial simplicity”. Psychometrika, 39, pp. 31–36.

Makinda, S. M., (2007). “How Africa can benefit from knowledge”, Futures, 39, pp. 973-985.

Narayan, P. K., Mishra, S., & Narayan, S., (2011). “Do market capitalization and stocks traded converge? New global evidence”, Journal of Banking and Finance, 35, pp. 2771-2781.

Saxegaard, M., (2006). “Excess liquidity and effectiveness of monetary policy: evidence from Sub-Saharan Africa”, IMF Working Paper, No. 06/115.

Weber, A. S., (2011). “The role of education in knowledge economies in developing countries”, Procedia Social and Behavioral Sciences, 15, pp. 2589-2594.

World Bank, (2007). “Building Knowledge Economies. Advanced Strategies for Development”, World Bank Institute.