Trade liberalization and technology absorption in a less developing country context

Abstract

Purpose

The paper aims to investigate the relationship between trade liberalization and technology absorption in a less developing country context. The objective is to empirically test the relationship between these two variables. This analysis was conducted in Sub-Saharan African economies.

Design/methodology/approach

A panel regression of 20 countries in Sub-Saharan Africa was estimated based on a model that takes into account both trade policy and non-policy factors affecting technology absorption.

Findings

A positive and significant relationship was found between trade liberalization and technology absorption. This relationship is valid across a variety of model specifications, technology absorption proxies and estimation techniques. Moreover, non-policy factors such as geographical spillover play significant role in technology absorption.

Originality/value

The paper examines the link between the trade liberalization and the technology absorption in Sub-Saharan Africa. The analysis is empirical in nature and builds on panel estimations. The novelty of the paper comes from the topic investigated and the focus on a region which has not attracted much attention in the literature.

Citation

Bannaga, A. (2015), "Trade liberalization and technology absorption in a less developing country context", International Journal of Development Issues, Vol. 14 No. 2, pp. 149-170. https://doi.org/10.1108/IJDI-12-2014-0085