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Trade Openness And Economic Growth In Sub-Saharan Africa: A Dynamic Panel Data Analysis

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Abstract

The paper examines the impact of trade openness on economic growth in subSaharan Africa as well as the role that Foreign Direct Investment (FDI) plays in the nature of relationship between trade openness and economic growth in the region. The paper used dynamic panel General Method of Moment (GMM) in estimating the data. The data used were sourced from World Development Indicators (WDI) and United Nations Conference on Trade and Development (UNCTAD). Results of the dynamic panel GMM show that trade openness had positive impact on economic growth in sub-Saharan Africa. The results further reveal that FDI played a positive role in the effect of trade openness on economic growth in the countries. The paper concludes that FDI enhances trade openness as a means to further developing economic activities in sub-Saharan Africa.

Suggested Citation

  • EGBETUNDE, Tajudeen & ALLEY, Ibrahim, 2016. "Trade Openness And Economic Growth In Sub-Saharan Africa: A Dynamic Panel Data Analysis," Ilorin Journal of Business and Social Sciences, Faculty of Social Sciences, University of Ilorin, vol. 18(1), pages 153-169, October.
    • Handle: RePEc:ris:ilojbs:0008
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