Asongu, Simplice Amavilah, Voxi Heinrich S. Andrés, Antonio R.
AGDI Working Paper WP/19/004
This paper develops a framework (a) to examine whether or not the African business e nvironment hinders or promotes the knowledge economy (KE), (b) to determine how the KE affects econom ic performance, and (c) how economic performance relates to the inequality-adjusted human socioeconomic development (IHDI) of 53 African countries during the 1996-2010 time period. We estimate the linkages with three related equations. The results support a strong correlation between the dynamics of st arting and doing business and variations in KE. The results also show that there exists a weak link between KE and economic performance. Nonetheless, KE-influenced performance plays a more important role i n socioeconomic development than some of the conventional control variables like foreign direct investment (FDI), foreign aid, and even private investment.
Business Dynamics Knowledge Economy Economic Performance Instrumental Variables Panel Data Inclusive Growth and Development Sub-Saharan Africa