The Influence of Export Diversification on Economic Growth: A Case of Southern African Development Community (SADC)

Abstract

The paper assessed "the influence of export diversification on economic growth in SADC". GMM approximation technique was adopted to obtain reliable approximations of the effect of export diversification on economic growth. Our study accounts for time-series variations in the data, captures country-specific time-invariant effects, and controls for endogeneity in the estimation model. The results show a significant effect of constructs of export diversification on economic growth. In addition, the study indicates a significant result on the additional control variables such as (human capital, domestic capital, and foreign direct investment). Based on findings, the paper recommended that governments in SADC should promote export diversification and investment in both physical and human capital, keep political stability under control, and set policies that will fascinate foreign direct investment into enhancing productive sectors of their national economies.