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An Investigation of Openness and Economic Growth Using Panel Estimation

Pei-Pei Chen () and Rangan Gupta ()
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Pei-Pei Chen: Department of Economics, University of Pretoria

No 200622, Working Papers from University of Pretoria, Department of Economics

Abstract: This paper examines the impact of trade openness on economic growth for the SADC region in Africa over the period of 1990 to 2003. Based on a structure consistent with the endogenous growth theory, we find that trade openness has had a strong positive impact on economic growth in this region over this period. Our results are robust across alternative specifications and methodologies. The study also highlights the role of education in strengthening the effect of openness on sustainable growth, via better absorption of knowledge and technological spillovers from trade liberalization.

Keywords: Trade Openness; Growth; Endogenous Growth Theory (search for similar items in EconPapers)
JEL-codes: F15 H51 H52 N17 O47 R11 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2006-11
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