Do technological innovation have a role in achieving sustainable structural change in Libya; A natural resources, industrial growth, and governance quality nexus?

Omar Aziz Abubker Almejrab; Umar Shuaibu Aliyu

Authors

Omar Aziz Abubker Almejrab Department of Business Management, American University of Cyprus, Guzelyurt Anayolu, Alaykoy/99200-Lefcosia, TRNC, Cyprus
Umar Shuaibu Aliyu Department of Business Management, American University of Cyprus, Guzelyurt Anayolu, Alaykoy/99200-Lefcosia, TRNC, Cyprus

Keywords:

Technological innovation, Sustainable development, Structural transformation, Libya

Abstract

This study investigates the impact of technological innovation on sustainable structural development in Libya: a nexus among natural resources, industrial growth, and governance quality. While the study finds a positive relationship between lnTECH, lnINDEV and lnGOVQU with lnGDPP at a significant level of 1% based on FMOLS, lnNRSC is negative and significant. Accordingly, the results from DOLS revealed that lnNRSC is still negative and insignificant. This indicates that a one per cent increase in lnTECH, lnINDEV and lnGOVQU induce an increase in lnGDPP in Libya by 1.399%, and 1.810%, 0.765% respectively. The study concludes that technological innovation, natural resources, industrial growth, and governance quality, have significant impacts on the process of structural transformation in Libya. The design and selection of policy tools to assist innovation and structural development are of significant importance. Therefore, policy policymakers are advised to implement an accommodative policy framework that carries every group together in Libya.

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