Export diversification and economic growth in sub-Saharan Africa: could there be a mixed relationship?

Based on the differences in export diversification between sub-regions, this research aims to determine the type of relationship that may exist between export diversification and economic growth in Sub-Saharan Africa. Using data from 36 countries grouped according to their level of diversification, a panel ARDL model is estimated. The results show that for highly diversified sub-regions, the relationship between export diversification and economic growth is inverted U-shaped, while for concentrated sub-regions, the relationship is U-shaped. Highly diversified countries are advised to integrate further into the African continental free-trade zone, which, by lifting barriers and improving the regulatory framework, offers greater openness to new markets. For less diversified countries, it would be wise to accumulate commodity rents, as this will enable them to bear the costs of implementing diversification policies when the time comes.