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Import-economic growth nexus in selected African countries: An application of the Toda-Yamamoto Granger non-causality test

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  • Olufemi Adewale Aluko Adefemi A. Obalade

    (University of Ilorin, Ilorin, Kwara State, NIGERIA. School of Accounting, Economics and Finance, University of KwaZulu-Natal, South Africa.)

Abstract

We determine the nexus between imports and economic growth for a sample of 26 African countries for the period 1990-2015 within the neoclassical production function framework. We mainly contribute to literature by overcoming the weak theoretical modelling framework and possible model specification bias in most extant studies. Using the Toda-Yamamoto Granger non-causality test, the empirical results indicate that there is absence of causality between imports and economic growth in more than half of the countries in the sample, thus suggesting that neutrality hypothesis is predominant among the countries. We provide ample evidence that causality is absent from imports to economic growth. However, our results should be treated with caution because the absence of causality from imports to economic growth should not imply that imports do not play a role in the growth process of an economy. JEL Classification: F10, F43, O11

Suggested Citation

  • Olufemi Adewale Aluko Adefemi A. Obalade, 2020. "Import-economic growth nexus in selected African countries: An application of the Toda-Yamamoto Granger non-causality test," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 23(2), pages 117-128, November.
    • Handle: RePEc:zag:zirebs:v:23:y:2020:i:2:p:117-128
    DOI: 10.2478/zireb-2020-0016
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    More about this item

    Keywords

    Imports; Economic growth; Toda-Yamamoto Granger non-causality test; Africa;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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