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5.1 Faster economic growth could assist in diversification efforts: Economic Report on Africa 2007
The results for Africa, shown in table A5.1, suggest further that as income per capita increases, there is a tendency for African economies to experience improvement in their diversification processes. This is a very significant result and it is in line with other empirical evidence, (see Imbs and Wacziarg 2003), which shows that poor countries tend to diversify at first as their incomes rise, before they later begin to become more specialized. African countries also fit into this theory of the U-shaped stages of diversification.

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