Thirteenth Global Studies Conference

Abstract

The pursuit of economic growth, which is both inclusive and sustainable among African countries, has placed economic transformation at the centre of development policies. Consequently, studies on the main drivers of economic transformation in African countries have received much attention in recent literature due to its crucial role in poverty reduction. Thus, this study empirically investigates the effect of access to infrastructure and trade openness on economic transformation in selected Common Market for Eastern and Southern Africa (COMESA) countries over the period 1993-2016. Specifically, the study examines recent cross-sectional time series data of 14 selected COMESA countries using the Pooled Mean Group (PMG) estimation technique. Access to infrastructure was captured by the number of mobile cellular subscriptions, access to electricity, and access to improved water and sanitation; while trade openness and economic transformation was captured by the sum of exports and imports as a percent of Gross Domestic Product and nominal manufacturing value added shares in total value added respectively. Findings point to a significant long run relationship not only between access to infrastructure and economic transformation but also between trade openness and economic transformation. Recommendations highlight the greater need to improve the quality of access to infrastructure in COMESA and to harmonize industry specific trade policies.