Foreign Technology Absorption in Sub-Saharan Africa: A Long-Term Analysis of the Nature and Stability of Relationships

Özet

The goal of this paper is to investigate the relationships between the processof technology absorption, official development aid (ODA), foreign direct investment(FDI), and import in Sub-Saharan Africa. We investigate long-run relationships betweenthe process of technology absorption in the region. The investigation is based on suchvariables as ODA, FDI as well as import from developing and developed economies toestimate co-integration relationships and error-correction models. The results obtainedindicate that aid and import from the South are more likely to cause the absorption oftechnology than other directions of flow.