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Please use this identifier to cite or link to this item: http://bsuir.bsum.edu.ng:8080/jspui/handle/11409/560

Title: TRADE OPENNESS AND ECONOMIC GROWTH IN SELECTED WEST AFRICAN COUNTRIES
Authors: TYOPEV, IORWUESE
Keywords: TRADE OPENNESS, ECONOMIC GROWTH, WEST AFRICAN COUNTRIES
Issue Date: Aug-2019
Publisher: NONE
Citation: NONE
Series/Report no.: NONE;NONE
Abstract: This research examines the relationship between trade openness and economic growth in selected West African countries (Cote d‟Ivoire, Ghana and Nigeria) using secondary data in a multivariate panel framework for the period 1970 - 2016. The relationship between trade openness and economic growth of West African countries has been extensively investigated but the results have been mixed and inconclusive. This might be attributed to the role of omitted variables or the methodologies employed. The main objective was to establish the effects of trade openness on economic growth in these countries. The Autoregressive Distributed Lag (ARDL) bound tests, VAR Granger Causality/Block Exogeneity Wald tests, Impulse Response Functions (IRFs) and Fixed Error Variance Decomposition (FEVD), Dumitrescu and Hurlin (2012) panel Granger causality test, as well as the fixed effect Least Squares Dummy Variable (LSDV) and other diagnostic tests were employed for data estimation. The results indicated long run relationship between trade openness and economic growth in Cote d‟Ivoire, Ghana and Nigeria, and that this relationship is negative but insignificant for Nigeria and Cote d‟Ivoire, but positive and significant for Ghana. In the short run, changes in RGDP are driven mostly by the error correction term and short run trade openness shocks for each country. Short run deviations from the long run equilibrium take from 1.291 years (Cote d‟Ivoire), 2.189 years (Ghana), and as long as 7.498 years (Nigeria) to return back to equilibrium. The results also indicated heterogeneous non-causality (HENC) implying that causation between trade openness and economic growth exist in a subgroup of the panel. The combination of other macroeconomic variables like investment, human capital, net inflow of FDI and the exchange rate complements the contribution of trade to economic growth. Therefore, these countries should promote appropriate trade policies devoted to foster increased local production of manufactured and agricultural goods to reduce importation and stimulate exports, as a strategy to boost economic growth.
URI: http://bsuir.bsum.edu.ng:8080/jspui/handle/11409/560
ISSN: NONE
Appears in Collections:Economics

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