THE GENERATIVE POWER OF AIR FREIGHT IN THE TRADE OPENNESS - ECONOMIC GROWTH NEXUS IN AFRICAN COUNTRIES

This research investigates the interactive effect of trade openness and the institutional quality on economic growth in sub-Sahara Africa. The sample consists of 38 sub-Saharan African countries and covers the period 1986-2015. Pooled OLS, fixed effect, and Dynamic GMM were used as estimation techniques. The empirical section used a nonlinear growth regression specification that interacts trade openness with law and order, bureaucratic quality, corruption, government stability, and democratic accountability. The study found that corruption, government stability, law and order, and bureaucratic quality as institutional quality variables harm economic growth. The interaction of trade openness and institutional quality variables positively impacted economic growth. It is an indication that trade openness better impacted economic growth in the presence of high-quality institutional variables.

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ELECTRICITY CONSUMPTION, TRADE OPENNESS AND ECONOMIC GROWTH IN DEVELOPING COUNTRIES: A DISAGGREGATED APPROACH

The Singapore Economic Review ◽

10.1142/s0217590821500715 ◽

2021 ◽

pp. 1-28

Author(s):

KIZITO UYI EHIGIAMUSOE ◽

SIKIRU JIMOH BABALOLA

Keyword(s):

Economic Growth ◽

Trade Openness ◽

Electricity Consumption ◽

Impulse Response Functions ◽

African Countries ◽

Cross Sectional ◽

Long Run ◽

Short Run ◽

Cross Sectional Dependence ◽

Trade And Growth

This study examines the relationship between electricity consumption, trade openness and economic growth in 25 African countries during 1980–2016. It disaggregates electricity into renewable and non-renewable and disaggregates trade into exports and imports. It employs cointegration and Granger causality techniques that enable us to determine both joint and individual causality, as well as account for individual heterogeneity and cross-sectional dependence. It also uses the variance decompositions (VDs) and impulse response functions (IRFs). This study shows a short-run and long-run joint causality from electricity and trade to growth, as well as a short-run and long-run joint causality from trade and growth to electricity. Besides, the Dumitrescu–Hurlin Granger non-causality technique shows a bidirectional causality between electricity and growth and between trade and growth but a unidirectional causality from electricity to trade. It also reveals the causal relationships from exports, imports, renewable and non-renewable electricity to growth. This study implies that electricity consumption and trade openness stimulate growth, while the latter also determines electricity consumption and trade openness. Based on the findings, we recommend some policy options.

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Dynamic Effects of Foreign Aid, Trade Openness and Fdi on Economic Growth for West African Countries

The Journal of Developing Areas ◽

10.1353/jda.2022.0034 ◽

2022 ◽

Vol 56 (2) ◽

pp. 49-63

Author(s):

Olufemi Muibi Saibu ◽

Ogbuagu Matthew Ikechukwu ◽

Philip Ifeakachukwu Nwosa

Keyword(s):

Economic Growth ◽

Foreign Aid ◽

Trade Openness ◽

West African ◽

Dynamic Effects ◽

African Countries

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Exploration of the Impact of China’s Outward Foreign Direct Investment (FDI) on Economic Growth in Asia and North Africa along the Belt and Road (B&R) Initiative

Sustainability ◽

10.3390/su13041623 ◽

2021 ◽

Vol 13 (4) ◽

pp. 1623

Author(s):

Alnoah Abdulsalam ◽

Helian Xu ◽

Waqar Ameer ◽

AL-Barakani Abdo ◽

Jiejin Xia

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Direct Investment ◽

Trade Openness ◽

Ordinary Least Squares ◽

Host Countries ◽

African Countries ◽

Belt And Road ◽

The Impact ◽

The Belt And Road

This empirical study has examined the impact of Chinese investments, namely infrastructure, energy, services, other investment sectors, and trade openness on the economies of the 25 Asian and North African countries along with the Belt and Road (B&R) Initiative for a period of 2007 to 2016 using the Johansen Fisher Panel Cointegration Test, Panel Dynamic Ordinary Least Squares (PDOLS) model, and the Toda and Yamamoto technique for testing causality. The findings revealed cointegration among the variables and that the impact of Chinese investments on economic growth in the host countries is positive, but it has a weaker effect, to a certain extent, in all sectors of the host countries while trade openness positively impacts the countries. Furthermore, there is evidence of a unidirectional causality between some FDI (foreign direct investment) economies while the investment in services and other sectors does not cause economic growth in the host countries. Based on the results, the paper proposes that the host countries increase the FDI in the sector of infrastructure, energy, and technology to enhance their economies.

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EFFECT OF TRADE OPENNESS ON ECONOMIC GROWTH IN SUB-SAHARAN AFRICA: DYNAMIC PANEL ANALYSIS

EPRA International Journal of Economics, Business and Management Studies ◽

10.36713/epra6388 ◽

2021 ◽

pp. 23-35

Author(s):

Wycliffe Mugun

Keyword(s):

Economic Growth ◽

Capital Stock ◽

Trade Openness ◽

Generalized Method Of Moments ◽

Sub Saharan Africa ◽

Allocation Of Resources ◽

African Countries ◽

Regional Trade ◽

Explanatory Variables ◽

Sub Saharan

Theoretically, proponents of traditional trade theories argue that trade openness can enhance economic growth by providing access to goods and services, achieving efficiency in allocation of resources through comparative advantage, creation of employment opportunities and generation of capital that leads to better living standards in terms of higher level of GDP per capita,trade openness may strengthen economic growth through different channels such as efficient allocation of resources. However, owing to the fact that there are limited studies on trade openness, various studies indicate divergent views on the effect of trade openness on economic growth. For this reason, it is not clear whether or not trade openness affect economic growth in Sub-Saharan Africa. The main objective of this study was to investigate the effect of trade openness on economic growth in Sub-Saharan Africa. Control variables used in the regression included oversees development assistance, population growth rate, domestic credit and foreign direct investment. Trade openness, inflation and capital stock were explanatory variables and economic growth the dependent variable. This study was modeled using the Neoclassical Growth theory. One- step difference Generalized Method of Moments results revealed that trade openness had a positive and significant effect on economic growth, capital stock positive and insignificant relationship, while inflation had positive and insignificant relationship with economic growth in SSA.The study thus recommends that there is a need for improving balance of trade by increasing exports diversification and balanced growth and the policy makers of SSA countries should have to give a priority for trade and investment policies which requires some reforms to adjust with changing economic environment. The study concluded that extra-regional trade spurs higher output than intra-regional trade. This may be due to lack of efficiency in the implementation of trade agreements among the intra-regional constituent countries such as Sub-Saharan African countries and lack of full commitment by the member states governments to trade more intensively. KEYWORDS: Trade openness, economic growth, Sub-Saharan Africa

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Does Financial Development Affect the Economic Growth Gains from Trade Openness?

Economic Alternatives ◽

10.37075/ea.2020.4.10 ◽

2020 ◽

Vol 26 (4) ◽

pp. 666-682

Keyword(s):

Economic Growth ◽

Financial Development ◽

Trade Openness ◽

Generalized Method Of Moments ◽

Dynamic Panel Data ◽

North African ◽

African Countries ◽

Policy Makers ◽

North African Countries ◽

Sustainable Economic Growth

This article examines the relationship between trade openness, financial development and economic growth on a panel of four North African countries (Tunisia, Morocco, Algeria and Egypt), over a 5-year period from 1998 to 2017. Using dynamic panel data model estimated by means of the Generalized Method of Moments (GMM), we found that trade openness is positively related to economic growth. We also found that trade openness appears to be working as a complement to financial development and, moreover, that the effect of trade openness is more pronounced in the presence of the financial development variable. The findings suggest that trade openness and financial development are important elements in determining economic growth in these countries. Therefore, the policy-makers should continue to patronize the development of their financial sector and to allow more trade openness in order to achieve a high and sustainable economic growth.

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The Long-Run Effects of Trade Openness on Carbon Emissions in Sub-Saharan African Countries

Energies ◽

10.3390/en13205295 ◽

2020 ◽

Vol 13 (20) ◽

pp. 5295

Author(s):

Huaping Sun ◽

Love Enna ◽

Augustine Monney ◽

Dang Khoa Tran ◽

Ehsan Rasoulinezhad ◽

...

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Carbon Emissions ◽

Negative Impact ◽

Trade Openness ◽

Sustainable Growth ◽

African Countries ◽

Long Run ◽

Study Results ◽

Sub Saharan

Using a panel cointegration model developed based on the data extracted from the World Bank indicators, this study quantified the relationship between carbon emissions, energy consumption, economic growth, and trade openness in sub-Saharan African countries. It discovered from our analysis that there exists a long-run causality association amongst CO2 emissions, energy consumption, economic growth, and trade openness. The study noted the existence of the Environmental Kuznets Curve (EKC) in the panel using the square term for trade openness; it was found to have a negative impact, thus trade in the long run will somewhat decrease the environmental pollution in this region. The study results imply that there should be stringent policies and rigorous enforcement in sub-Saharan African to ensure sustainable growth without associative environmental issues.

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The Impact of Asian Foreign Direct Investment, Trade on Africa’s Economic Growth

International Journal of Innovation and Economic Development ◽

10.18775/ijied.1849-7551-7020.2015.31.2004 ◽

2017 ◽

Vol 3 (1) ◽

pp. 72-85 ◽

Cited By ~ 2

Author(s):

Modou Diouf ◽

Yun Liu Hai

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Direct Investment ◽

Developing Economies ◽

Trade Openness ◽

Ordinary Least Squares ◽

West African ◽

African Countries ◽

Market Opportunities ◽

The Impact

Globalization of capital and especially foreign direct investment (FDI) and trade has increased dramatically over the past decades. In developing economies; FDI has become the most stable and largest component of capital flows. This study examines the interaction between FDI, trade openness and economic growth with a focus on Asian FDI, trade and 13 West African countries for the period 1980-2015. The results from weighted Fully Modified Ordinary Least Squares (FMOLS) show that both FDI and trade significantly contribute to economic growth. The study also indicates that a unidirectional causality runs from FDI to economic growth indicating FDI-growth-led hypothesis while a bidirectional causality is detected between trade and economic growth validating feedback-effect. Increasing FDI could also promote trade by opening and expanding market opportunities.

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