Answer to Question #50308 in Macroeconomics for seyi ojo

Question

Make a critical analysis of the effect of technology on export output in Nigeria.

Answer 1

The export of high quality differentiated goods is associated with research and development (R&D) activities and foreign direct investment (FDI). However, physical capital has no effect on quality in the technology-intensive machinery industry. These results imply that if countries are interested in increasing the quality of the goods they export, they might consider implementing policies that promote R&D activities or attract FDI.