Trade
Paper Session
Saturday, Jan. 4, 2025 10:15 AM - 12:15 PM (PST)
- Chair: Socrates Kraido Majune, University of Nairobi
Propagation of a Technological Change and Labor Productivity Outcomes: Evidence of a Shock to the Semiconductor Industry
Abstract
AbstractThis paper investigates the effect of a positive productivity shock in the semiconductor industry on U.S. labor productivity. I exploit a buyer-supplier production networks model to show the role of interindustry trade of inputs in the propagation of a techno- logical change. My findings suggest that a one standard deviation improvement to the U.S. semiconductor industry’s productivity would induce a 2.1% increase to the real labor productivity the manufacturing sector. The decomposition of semiconductor industry’s connectivity shows that its position as an input supplier accounts for 75% of this impact while its indirect effect amounts for 63%. My study provides insights in understanding the role of input output linkages in the transmission of technological change across sectors and their effect on labor productivity outcomes.
A Comparative Analysis of Economic Diversification and Complexity in African Countries Versus Other Global South Regions: Assessing the Significance of Export Diversification and Economic Complexity
Abstract
This research paper investigates the influence of economic complexity and export diversity on growth in the Global South. Our study posits that concealed systemic interactions arise from societal challenges such as growth, development, technological change, income inequality, spatial disparities, and resilience. We uncover positive effects on economic growth by scrutinizing the role of economic complexity and export diversity. However, distinct economic and export diversity thresholds exist in each region to realize these benefits. Notably, African countries demonstrate a lower threshold compared to other regions, implying that even marginal improvements in complexity and diversity can lead to substantial economic gains. Policymakers should address specific productivity constraints in key sectors to harness growth potential, particularly in regions with lower economic complexity and diversity. Our analysis utilizes data from the Global South spanning the period 1995-2022, employing Dynamic Panel Threshold, Dynamic GMM, and Panel Quantile Regression methodologies.Beyond Trade Volumes: The African Growth and Opportunity Act’s Influence on the Quality of African Exports
Abstract
The available research on the African Growth and Opportunity Act (AGOA) primarily focuses on quantifying its effects on trade volumes of the beneficiary Sub-Saharan Africa (SSA) countries with the USA. Leveraging a comprehensive dataset spanning three decades, from a decade before AGOA's implementation to two decades after its implementation and employing a fixed-effects panel data estimation approach, with the quality of exports as the dependent variable and controls for various economic and infrastructural factors, we examine the impact of AGOA on the quality of exports from SSA countries between 1990 and 2020. Preliminary findings from our analysis reveal that improvement in SSA countries’ export quality is significantly associated with infrastructural development, economic policies, and governance levels. These findings suggest that merely providing market access is insufficient for holistic economic development; complementary domestic policies and infrastructure improvements are equally crucial. Beyond our contribution to the broader discourse on international trade policy and development, we provide insights relevant to refining and broadening the initiative's impact to serve the diverse needs of the beneficiary countries. Given the current efforts to extend AGOA through 2041, these insights are particularly valuable for those involved in designing trade and development strategies for SSA, as they emphasize the importance of a more nuanced approach in iterations of AGOA, tailored strategies, and targeted assistance to address the unique challenges and opportunities in different SSA countries.The Labor Market Consequences of the African Growth and Opportunity Act (AGOA)
Abstract
Since 2000, the United States government engaged in one of the more important initiatives — The African Growth and Opportunity Act (AGOA) — toward Sub Saharan Africa countries. The AGOA provides non-reciprocal duty-free access to goods exported from eligible countries. We exploit variation in eligibility between countries and the variation in the implementation of the policy generated by timing of eligibility. Using country-level data over a 40-year period within a difference-in-differences analysis, we estimate the labor market consequences of the AGOA policy. Our results suggest that the policy has decreased the share of workers in agriculture while increasing the share of workers engaged in industrial activities. These findings are consistent with item 9.2 of the Sustainable Development Goals. Consistent with these findings, the policy also increased the proportion of workers engaged in wage labor. The results are consistent for both male and female workers. While the policy has led to increases in the proportion of wage labor as well as those in industry-related activities, it has no impact on labor force participation, employment ratio or the unemployment rate. Policy action designed to engage a greater proportion of the population can propel the AGOA to further beyond its stated goals.A Profile of Essential Indigenous Models for Entrepreneurial Success
Abstract
Given the pivotal role that successful businesses play in mitigating unemployment, bridging inequality and income gaps, and alleviating poverty, the escalating incidence of Small, Medium, and Micro Enterprises (SMMEs) facing failure holds profound implications for the global economy. This theoretical discourse amalgamates indigenous entrepreneurial best practices, yielding a comprehensive understanding of the critical imperatives for SMME sustainability and success. Consequently, it offers valuable insights for business stakeholders. The findings emphasize the necessity of adopting a multifaceted approach that integrates successful models’ best practices. Such integration informs policy formulation and strategic planning for both established and aspiring entrepreneurs. Policymakers, educators, and business practitioners alike should recognize the significance of this research in fostering a resilient entrepreneurial ecosystem capable of sustaining economic growth and addressing socio-economic disparities.Differential Financial Access and Entrepreneurial Breakthrough in Developing Nations: A Case of South African Rural Small Businesses
Abstract
Securing finance is critical for all enterprises, and there is a wealth of literature discussing factors that restrict such access, particularly for small business owners. However, current literature often overlooks the importance of understanding which factors are paramount to different business categories. This study aimed to profile the aspects influencing financial aid among smallholder farmers and subsistence businesses. Data collected from the Eastern Cape province of South Africa were analyzed using latent class analysis. This statistical method identifies distinct groups of individuals based on their responses to a set of categorical variables. Nine dichotomous variables [business location, personal income, business revenue, availability of financial institutions, financial literacy, race, business size, State of my business, and interest rate] concerning finance access were surveyed across 189 participants. Our evidence shows that these factors do not affect all farmers or businesses uniformly. We found these factors pervasive for 38% of the surveyed sample, while they had a low to moderate impact on 39% and 23% of farmers. These findings have significant implications for policy on rural business development, food security, and credit risk profiling by business capital providers.Discussant(s)
Bedassa Tadesse
,
University of Minnesota-Duluth
Bichaka Fayissa
,
Middle Tennessee State University
Chinonso Etumnu
,
Kentucky State University
Zelealem Yiheyis
,
Clark Atlanta University
Colin Cannonier
,
Belmont University
JEL Classifications
- F1 - Trade