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Citation Information

Type Working Paper - UNU-MERIT Working Papers
Title The importance (impact) of knowledge at the macro-micro levels in Sudan
Author(s)
Publication (Day/Month/Year) 2011
URL http://collections.unu.edu/eserv/UNU:213/wp2011-034.pdf
Abstract
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.

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