Essays on Economic Diversification in Resource-Rich Developing Countries

Enhancing economic diversity stands as a top priority for policymakers in developing countries. Higher degrees of economic diversity are often associated with increased economic stability and sustained growth. However, it is frequently observed that countries in the early stages of development tend to display a significant concentration of economic activities within a few specific sectors. This phenomenon is particularly prominent among resource-rich developing nations, where heavy reliance on commodity exports is usually the norm.

This thesis endeavours to delve into the subject of economic diversification, with a particular focus on resource-rich developing countries, notably in Sub-Saharan Africa (SSA). The research not only sheds light on the mechanisms connecting sectoral diversification to long-term economic growth but also identifies factors that may hinder diversification efforts in resource-rich nations. Furthermore, the analyses provide an assessment of the effectiveness of implementing special economic zones as a strategy for promoting diversification within the SSA region.