Driving factors for national competitiveness in Africa as measured by GDP per capita

by Neill Andrews

Institution: University of Pretoria
Year: 2014
Keywords: Quantitative research; Gross domestic product; Competition  – Africa; UCTD
Record ID: 1477564
Full text PDF: http://hdl.handle.net/2263/43965


Competitiveness has been part of central, monetary policy making for over 500 years where regions have aimed to improve competitiveness and productivity by focussing on specific factors. The focus of the research was to identify which factors are most relevant for the African continent on determining competitiveness which will allow policy makers to understand how best to direct their investment with the greatest productivity return. The research methodology was quantitative in nature, based on secondary data from the Global Competitiveness Report over the past five years. The sample included 39 of the 54 African countries which are the countries on which the report collected data from. The unit of analysis was GDP per capita. A multivariate Generalised Linear Model with a log link function and Gamma error structure was built. The results showed that the order of importance for Africa was macroeconomic stability; infrastructure; technological readiness; and market size with the other factors not having a material influence. Building a similar model on all the countries have included two additional factors namely health and primary education as well as higher education and training. This indicates that certain structural factors are more important for countries in the developing phase such as Africa.