Leveraging Innovation to Increase Intra-COMESA Trade

Abstract

This paper explores the role of technology innovation on the volume and value of COMESA exports to COMESA member states and other 43 significant importers by using a gravity model.  The role of technology innovation on export trade was estimated using a panel data set of 12 years (2007-2018) with the Poisson Pseudo-Maximum Likelihood (PPML) technique given its advantage in handling several estimations challenges.  The study found that technology innovation has a high potential in the COMESA region to enhance the overall quality of exports, increase competitive advantage and consequently increase the volume and value of exports.  The study recommends that COMESA should increase investments in innovation, strengthen and build institutions that support technology innovation in addition to the ongoing trade facilitation efforts.