The Impact of Globalization on Economic Growth in Sub-Saharan Africa: Evidence from the Threshold Effect Regression

Mustapha Mukhtar and Idris Abdullahi Abdulqadir ()
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Mustapha Mukhtar: School of Economics and Management, Guangdong University of Petrochemical Technology, Maoming 525000, China
Idris Abdullahi Abdulqadir: School of Economics and Management, Guangdong University of Petrochemical Technology, Maoming 525000, China

Economies, 2025, vol. 13, issue 9, 1-18

Abstract: This study employs the panel quantile regression (QR) technique to evaluate whether globalization threshold conditions are essential for achieving effective economic growth, utilizing data from 47 Sub-Saharan African (SSA) countries for the period from 2000 to 2021. The bootstrap simultaneous conditional QR analysis was conducted using the fixed-effects panel QR approach. The study findings revealed that the globalization thresholds at which the total effect of globalization as a percentage of global integration changes from negative to positive are 3.82% and 4.36%, respectively. Furthermore, the critical mass of FDI and trade thresholds at which the total effects of FDI and trade, as a percentage of knowledge spillovers, change from negative to positive is 4.66% and 2.19%, respectively. Conversely, these results revealed an asymmetric relationship between globalization and growth among SSA countries. Therefore, these triggers and globalization thresholds serve as essential conditions and catalysts that will foster economic development in SSA economies. The results also indicate significant effects of globalization thresholds on economic growth among the SSA countries. Regarding policy relevance, these findings are also crucial for policymakers when they are developing strategies that will promote equal opportunity and balance development in the region through knowledge spillovers and improvements in global integration.

Keywords: globalization index; globalization thresholds; knowledge spillovers; economic growth; Sub-Saharan African countries (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2025
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