Effect of Private Investment on Export Diversification in Sub-Saharan Africa

The objective of this article is to assess the effect of private investment on vertical export diversification in Sub-Saharan Africa (SSA). To achieve this, econometric estimates were made using the Moments-Multiquantile Regression (MMQR) method on the one hand. To verify the robustness of the MMQR estimates, the ordinary least squares (OLS) method grouped with Driscoll and Kraay standard errors was also used. The estimates were made using panel data for the period 2009 to 2022, covering 47 SSA countries. The results of this study show that private investment has a positive impact on the vertical diversification of exports. It is therefore important for the authorities in SSA countries to encourage a climate conducive to private investment, promote the diversification of investment sectors, and develop infrastructure.