The importance (impact) of knowledge at the macro-micro levels in Sudan
Samia S. O. M. Nour
#2011-034
In this paper we provide a new contribution and fill the gap in the
Sudanese literature by investigating the importance (impact) of tacit
and codified sources of knowledge at the micro and macro levels in Sudan
using new primary data from the firm survey (2010) at the micro level
and secondary data at the macro level respectively. Our results at the
macro level are consistent with the notion that tacit knowledge and
codified sources of knowledge are positively and significantly
correlated and complementary with both schooling years and GDP growth
(economic growth rate). Moreover, we find that at the macro level
codified knowledge and the number of FTER show significant positive
correlations with technology (patents). Furthermore, our results at the
macro level show significant positive complementary relationships
between codified knowledge and the number of FTER, which we interpret as
a complementary relationship between tacit knowledge and codified
knowledge. Moreover, at the micro (firm) level, we illustrate the
importance of tacit knowledge, and we illustrate that tacit knowledge is
positively and significantly correlated with technology (expenditures on
ICT) and upskilling (expenditures on training), output (defined by total
sales value), output diversification, productivity and profit. In
addition, we find that at the micro (firm) level, tacit and codified
knowledge show positive significant correlations with total capital, and
firm size. We explain positive correlations between knowledge and
various variables at the micro and macro levels. Therefore, further
incentives should be provided to improve tacit and codified sources of
knowledge at the macro and micro levels. Our results are consistent with
the findings in the knowledge literature, another implication is that
since tacit knowledge is often embodied in educated people and so in
human capital, the positive impact of tacit knowledge also implies the
importance of a good education at the micro and macro levels.
Keywords: Tacit knowledge, codified knowledge, economic growth, Sudan.
JEL classification: O10, O11, O12, O30