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The role of exports, FDI and imports in development: evidence from Sub-Saharan African countries

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  • Abdullahi Ahmed
  • Enjiang Cheng
  • George Messinis

Abstract

The disappointing economic performance of Sub-Saharan African (SSA) economies in the late 1980s prompted reforms in foreign trade and Foreign Direct Investment (FDI) in the early 1990s. Using the Autoregressive Distributed Lag (ARDL) approach and Pedroni panel estimation procedures that allow for heterogeneity, this study found that exports and FDI have a significant impact on economic growth. Granger-type causality tests show the interrelatedness of exports, FDI, imports and income variables. The results also provide evidence of a two-stage causal chain of exports, imports and income. This article calls for more market-oriented policy reforms in SSA countries.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 43 (2011)
Issue (Month): 26 ()
Pages: 3719-3731

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Handle: RePEc:taf:applec:v:43:y:2011:i:26:p:3719-3731

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References

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Cited by:
  1. Yeboah, Osei-Agyeman & Naanwaab, Cephas & Saleem, Shaik & Akuffo, Akua S., 2012. "Effects of Trade Openness on Economic Growth: The Case of African Countries," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119795, Southern Agricultural Economics Association.

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