Technology Gap and the Role of National Innovation System in a Balance of Payments Constrained Growth Model: Empirical Evidence From Nigeria | Zendy

Yohanna Panshak | Zendy; İrfan Civcir | Zendy; Hüseyin Özdeşer | Zendy

Open Access

Technology Gap and the Role of National Innovation System in a Balance of Payments Constrained Growth Model: Empirical Evidence From Nigeria

Author(s) -

Yohanna Panshak,

İrfan Civcir,

Hüseyin Özdeşer

Publication year - 2019

Publication title -

sage open

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.357

H-Index - 32

ISSN - 2158-2440

DOI - 10.1177/2158244019828846

Subject(s) - economics , balance of payments , distributed lag , constraint (computer aided design) , sustainable growth rate , consumption (sociology) , government spending , macroeconomics , balance (ability) , empirical evidence , quality (philosophy) , growth model , balance of trade , government (linguistics) , autoregressive model , econometrics , market economy , welfare , mechanical engineering , medicine , social science , philosophy , linguistics , physical medicine and rehabilitation , finance , epistemology , sociology , engineering

This study empirically seeks to connect more strongly the post-Keynesian macroeconomic idea anchored on the balance of payment (BOP) constraint with the evolutionary microeconomic idea related to the dynamics of technological gap in shaping export quality and long-run growth. It employs autoregressive distributed lag model to examine the validity of Thirlwall’s “Law” on the Nigerian economy from 1981 to 2017. The study found that new version of the model improves significantly in explaining long-run growth of the economy. Therefore, it recommends, among others, a cautious reduction of various components of imports especially final consumption, increasing the export share of commodities with high demand in the international market as well as increasing government spending on R&D to enhance export quality for a sustainable growth of the economy.

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