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

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  • Gislain Stéphane Gandjon Fankem

    (University of Yaoundé II)

  • Mohamadou Oumarou

    (University of Yaoundé II)

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.

Suggested Citation

  • Gislain Stéphane Gandjon Fankem & Mohamadou Oumarou, 2020. "Trade Openness and Economic Growth in Sub-Saharan Africa : Evidence from New Trade Openness Indicator," Economics Bulletin, AccessEcon, vol. 40(4), pages 2920-2931.
    • Handle: RePEc:ebl:ecbull:eb-20-00840
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    More about this item

    Keywords

    trade openness; economic growth; GMM in system; sub-saharan Africa;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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