Revolutionising Trade: Exploring how Innovation in Selected African Countries Shapes Economic Relations with Key Regions

Abstract

This study investigates the impact of innovation on trade participation between selected African countries and key global economic regions. The study used panel data on 25 African countries from 1996 to 2021. Non-stationary heterogeneous panel model of pooled mean group, mean group, and dynamic fixed effect estimators. The results reveal the significance of trademarks, patents, industrial design, and efficient logistics in enhancing trade competitiveness and market presence for African nations. The results suggest that fostering innovation ecosystems, investing in design capabilities, and strengthening intellectual property protection are essential for sustained trade growth. Policy recommendations suggested the need for investment in research and development, promotion of industrial design capabilities, and balanced trade policies to stimulate economic growth. Moreover, incentivizing SME participation in trade activities and prioritizing regional economic integration are crucial steps towards fostering sustainable trade relations. By implementing these recommendations, African countries can harness innovation to propel their economies into the global market, fostering trade relations that are mutually beneficial and sustainable.

Keywords

• african countries
• economic regions
• innovation
• trade participation