North African countries (NACs) production and export structure: Towards diversification and export sophistication strategy

Abstract

The North African countries (NACs) production and export structure is suffering from double constraints: insufficient diversification along with excessively weak sophistication. This study establish a deeper link between diversification/sophistication on and growth in the NACs. The study assesses the impact of these variables on the growth of these countries so as to verify whether the current export structure is indeed a constraint to the economic development. The approach used consists in estimating a growth model as a Barro's regression (conditional -convergence model) using panel data. The paper identify the factors determining diversification and sophistication of exports so as to find the various levers and actions which would firstly allow NACs to diversify their exports to higher added value products and secondly to take the existing products to a higher level of sophistication. The last part of this study proposes recommendations in terms of economic policies based on obtained results, highlighting the role of various stakeholders, and different policies