PRIMARY COMMODITY AND MANUFACTURING EXPORTS IN AFRICA: RELATIONSHIPS WITH FOREIGN AID, GEOGRAPHY AND RESOURCES

Several authors are of the view that aid, geography, education and resource endowments affect export diversification in Africa. This paper examined the association between these variables. It found that an increase in aid or geographic distance from markets is associated with less diversification. It also found that there is no co-movement between diversification and either education or natural resource endowments. Finally, there is strong evidence of co-movement between education and manufacturing value-added.