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This paper discusses the benefits for the Sub-Saharan African countries to invest in high-technologies as a more efficient long-term growth strategy. This type of investment can produce much more effective results than investing in the traditional sectors like agriculture. This paper is organized in four main parts. The first provides an analytical view of the economy in Sub-Saharan Africa, and its perspectives; the second part presents a review of the established economic theories behind technological progress, and it also provides specific domains of applicability of high-technologies; the third part describes the empirical study with determinants of technological progress combined with regression analysis results; and the last section presents the policy recommendations required in education, scientific research and development, governments’ priorities, and other incentives that can guarantee success of a technology policy.
Key words: High-technology, Economic growth, Sub-Saharan Africa.
JEL classification: O31, O33, O38.
Table of Contents
I. Sub-Saharan Africa’s Economy
Current economic situation
Efficiency, or inefficiency, of the production model?
II. Economic theories behind technological progress, and domains of applicability of high-technologies
The Neoclassical growth theory
The Endogenous growth theory
Growth of high-technology industries vs. other manufacturing industries
A country level experience: case of South Korea
Domains of applicability of high-technologies in SSA
III. Empirical study
Determinants of technological progress
Results and Analysis
IV. Policy recommendations
Access to international markets
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