High and medium technology exports, gross capital formation and economic growth in East Africa

Abstract

This paper provides new evidence on the impact of high and medium technology exports and gross capital formation on economic growth in the East African economies. The study utilizes data from the World Bank Development Indicators. This study estimates Panel Random Effects model as indicated by the Hausman test to determine the impact of high-tech and medium-tech exports and gross capital formation on economic growth on panel data for 6 East African countries for the period 1990–2021. The results indicate that in the long run, high-tech and medium-tech exports have a significant effect on economic growth in East Africa and gross capital formation has a positive but insignificant effect. The study recommends that the East African governments and policy makers need to increase their production and export of high and medium technology exports and this can be done through increased investment in human capital development, research and development (R&D) together with technology development and innovation.