Evan Carmichael Top Header about About About facebook Twitter YouTube Google+

5.1 It is not just a matter of policy as institutions matter in diversification efforts: Economic Report on Africa 2007



Free PDF Download
VI. Module III: National, Regional, and International Support - By United Nations Economic Commission for Africa

Name: Email:


Governance is one of the variables that capture the part that institutions play and
it emerges as strongly significant. In fact, in absolute terms, looked at from the
regional level, governance has stronger marginal effects compared to other variables
in our investigations. It is highly probable that good governance enables economies
to deepen diversification. As governance structures improve so does the capacity for
a country to develop a diversified exports base. The interaction of governance and
other variables such as per capita income and investments may drive the diversification
process more than individual effects. Just as openness can interact with per
capita income to determine the turning point in the two stages of diversification, it
is also possible that the interaction of governance and the other variables is critical.

Governance relies to a large extent on the quality of institutions. In the same way
these institutions have been found to be critical to growth, so is their effect in determining
the extent of diversification. It is not surprising that conflict, which is associated
with deterioration in governance, stifles diversification (box 5.1). The relationship
between conflict and diversification, even though weakly significant, indicates
a critical influence on diversification. Intuitively, one would expect the impact of
conflict on diversification to imply that escalation of conflict leads to reduced capacity
to diversify and this is what the continental assessment indicates.


Related Articles

  4.0 Diversification trends in Africa: Economic Report on Africa 2007
  5.0 Diversification and Growth: Economic Report on Africa 2007
  6.6 Strengthening of institutions: Economic Report on Africa 2007
  4.4 References: Economic Report on Africa 2007
  Overview VIII: Economic Report on Africa 2007
  5.4 References: Economic Report on Africa 2007
  Overview IX: Economic Report on Africa 2007
  4.3 Conclusion: Economic Report on Africa 2007
  Overview VII: Economic Report on Africa 2007
  5.1 Determinants of diversification in Africa: Economic Report on Africa 2007
  5.1 Fiscal space is critical for diversification: Economic Report on Africa 2007
  6.0 The Way Forward: Economic Report on Africa 2007
  5.3 Conclusion: Economic Report on Africa 2007
  6.4 Industrialization policies key to deepened diversification: Economic Report on Africa 2007
  5.2 Growth, productivity and diversification: Economic Report on Africa 2007
  5.1 There can be little diversification without an optimal trade policy: Economic Report on Africa 2007
  6.5 Financing research to increase TFP: Economic Report on Africa 2007
  4.2 Diversification regimes in Africa: Economic Report on Africa 2007
  1.8 References: Economic Report on Africa 2007
  5.1 Investment is vital for an economy to diversify: Economic Report on Africa 2007

Home > African-Accounts > United Nations Economic Commission for Africa > 51 It is not just a matter of policy as institutions matter in diversification efforts Economic Report on Africa 2007 >

Free PDF Download
VI. Module III: National, Regional, and International Support - By United Nations Economic Commission for Africa

Name: Email:

About the Author: United Nations Economic Commission for Africa

RSS for United Nations's articles - Visit United Nations's website
The United Nations Economic Commission for Africa (ECA) is the regional arm of the United Nations, mandated to support the economic and social development of its member States, foster intra-regional integration, and promote international cooperation for Africa's development.
Click here to visit United Nations's website.
Dashed Line

More from United Nations Economic Commission for Africa
40 Diversification trends in Africa Economic Report on Africa 2007
64 Industrialization policies key to deepened diversification Economic Report on Africa 2007
Overview VII Economic Report on Africa 2007
III BACKGROUND Microfinance in Africa
60 The Way Forward Economic Report on Africa 2007

Related Forum Posts

Re: Video: Was America Ever a White Nation? Re: Video: Was America Ever a White Nation?
Re: Coke Can Change: Gimmick or Mistake? Re: Coke Can Change: Gimmick or Mistake?
Re: Video: Was America Ever a White Nation? Re: Video: Was America Ever a White Nation?
Can someone explain Search engine optimization to me? Can someone explain Search engine optimization to me?
Re: How to Sell ideas to big companies ? Re: How to Sell ideas to big companies ?

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Share for a Cause



Worksheets
By: Evan Carmichael

Do you have what it takes to be an entrepreneur?

8 Powerful Steps to Finding Your Passion

Does your pitch suck?

Create a plan of attach to launch your new business.

8-Cover

Like this page? PLEASE +1 it! Evan Signature
Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Common Sense Stress Management

Step Out of Your Comfort Zone

Why I Exchange Business Cards

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.