The impact of diversification of economic sector exports on economic growth in oil producing African countries

Abstract

Purpose This research examines the impact of export diversification across various economic sectors on Africa's economic growth from 1990 to 2023, focusing on 18 resource-rich nations. Design/methodology/approach Panel Generalized Method of Moments (GMM) was used for estimation. Findings The Johansen Fisher Panel Co-integration Test revealed long-term relationships among the variables. Results indicate that diversification in agricultural exports negatively affects economic growth, while diversification in manufacturing and service sectors has no significant impact. Originality/value The study recommends that governments adopt mechanized farming, develop industries for raw material transformation, and enhance service sectors to improve economic contributions.