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All Journal IJEBD (International Journal Of Entrepreneurship And Business Development)
Mazorodze, Brian Tavonga
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Economics, Econometrics & Finance

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Export Diversification and Business Startups in Africa Mazorodze, Brian Tavonga
IJEBD (International Journal of Entrepreneurship and Business Development) Vol 7 No 6 (2024): November 2024
Publisher : LPPM of NAROTAMA UNIVERSITY

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29138/ijebd.v7i6.2768

Abstract

Purpose: This study examines the impact of export diversification on new business formation. Design/methodology/approach: Using an instrumental variable approach within a count data framework that relies on a panel dataset of 10 African countries (Algeria, Gabon, Lesotho, Morocco, Nigeria, Sierra Leone, Togo, Tunisia, Uganda and Zambia) observed between 2008 and 2018 annually, the evidence shows a non-trivial effect of export diversification on business start-ups. In particular, the odds of a new business being registered increase by 1.7 – 3.5 times in response to a percentage point increase in export diversification. Findings: This result reinforces the need for supportive policies aimed at moving away from concentrated export baskets towards more diversified ones to leverage entrepreneurial effort in the selected African countries. Paper type: Research Paper
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