Contents of the volume

2018, Volume 71 - Issue 4

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 07 November 2018

IMPACT OF TRADE OPENNESS ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM SOUTH AFRICA

Malefa Rose Malefane, Nicholas M. Odhiambo

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TRADE OPENNESS AND ECONOMIC GROWTH IN SADC COUNTRIES

Clement Zibusiso Moyo, Hlalefang Khobai

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CAUSALITY TESTING BETWEEN TRADE OPENNESS, FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: FRESH EVIDENCE FROM SUB-SAHARAN AFRICAN COUNTRIES

Olabode E. Olabisi, Evan Lau

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OUTPUT FLUCTUATIONS IN NIGERIA

Oluremi Ogun

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PUBLIC AND PRIVATE INVESTMENT AND ECONOMIC GROWTH IN ZAMBIA: A DYNAMIC APPROACH

Garikai Makuyana, Nicholas M. Odhiambo

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Clement Zibusiso MOYO, Department of Economics, Nelson Mandela University, Port Elizabeth, South Africa

Co-authors

Hlalefang KHOBAI, Department of Economics, Nelson Mandela University, Port Elizabeth, South Africa

Trade Openness and Economic Growth in SADC Countries

Pages

417-436

Abstract

In spite of the wave of liberalisation studied during the past decades, the debate still remains open on the issue of the trade openness and economic growth nexus. The paper reviews the relationship between trade openness and economic growth for 11 SADC countries for the period between 1990 and 2016. Investments, labour and inflation are incorporated in the model to form a multivariate framework. The study employed the ARDL-bounds test approach and the Pooled Mean Group (PMG) model to estimate the long-run relationship among the variables. The evidence suggests that co-integration is detected at the 1% level in all countries with the exception of Malawi, Mauritius, Swaziland and Tanzania. Co-integration is only detected at the 10% level in Tanzania while Malawi, Mauritius and Swaziland the null of no co-integration is not rejected. Furthermore, the PMG results revealed that trade openness has a negative impact on economic growth in the long-run. A positive relationship between the variables was found only in the short-run. 

JEL classification

C01, C13, C33, F10, F14

Keywords

Trade Openness, Economic Growth, ARDL Model, PMG Model, SADC

Index

  1. Introduction
  2. Literature review
  3. Data analysis and methodology
  4. Empirical results
  5. Conclusion and recommendations

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