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