@workingpaper{Ssozi2015,
title = {The Comparative Economics of Catch-Up in Output per worker, total factor productivity and technological gain in Sub-Saharan Africa},
author = {Simplice Asongu A John Ssozi},
editor = {African 2015 Governance and Development Institute WP/15/038},
url = {http://www.afridev.org/RePEc/agd/agd-wpaper/The-Comparative-Economics-of-TFP-SSA.pdf},
year = {2015},
date = {2015-09-01},
abstract = {After investigating the effect of external financial flows on total factor productivity and
technological gain, we use the beta catch-up and sigma convergence to compare dispersions in
output per worker, total factor productivity and technological gain in Sub-Saharan Africa (SSA)
for the years 1980-2010. The comparative evidence is articulated with income levels, years of
schooling, and health factors. We find; first, a positive association between foreign direct
investment, trade openness, foreign aid, remittances and total factor productivity. However,
when foreign direct investment is interacted with schooling, it is direct effect becomes negative
on total factor productivity. Second, beta catch-up is between19.22% and 19.70% per annum
with corresponding time to full catch-up of 25.38 years and 26.01 years respectively. Third, we
find sigma-convergence among low-income nations and upper-middle income nations separately,
but not for the entire sample together. Fourth, schooling in SSA is not yet a significant source of
technology, but it can make external financial inflows more effective. Policies to induce
external financial flows are not enough for development if absorptive capacity is low. More
policy implications are discussed.},
keywords = {and Sub-Saharan Africa, Convergence, External capital flows, Human Capital, Total Factor Productivity},
pubstate = {published},
tppubtype = {workingpaper}
}