Trade Openness and Economic Growth in Sub-Saharan Africa: Evidence from New Trade Openness Indicator

Gislain Stéphane Gandjon Fankem (gandjonstephane@gmail.com) and Mohamadou Oumarou (moumarou95@yahoo.fr)
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Gislain Stéphane Gandjon Fankem: University of Yaoundé II
Mohamadou Oumarou: University of Yaoundé II

Economics Bulletin, 2020, vol. 40, issue 4, 2920-2931

Abstract: The aim of this paper is to assess the effect of trade openness on economic growth in Sub-Saharan African countries. To this end, we use the new trade openness indicator of Squalli and Wilson (2011). Our estimates are carried out by the Generalized Moment Method (GMM) in system. The main results show that : (i) trade openness promotes economic growth in SSA countries; (ii) when accompanied by insufficient policies to promote infrastructure, financial development, human capital, investment in physical capital and price stability, trade openness does not further stimulate economic growth in SSA countries. Therefore, these complementary policies need to be sufficiently implemented in tandem with trade opening policies.

Keywords: trade openness; economic growth; GMM in system; sub-saharan Africa (search for similar items in EconPapers)
JEL-codes: F1 O1 (search for similar items in EconPapers)
Date: 2020-11-14
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Citations: View citations in EconPapers (2)

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