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Exports, growth and threshold effects in Africa

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  • Neil Foster

Abstract

The relationship between openness and growth remains a controversial issue in development economics with many studies focusing on the export-growth relationship. This paper examines whether the relationship between exports and growth found in large cross-section studies also holds in the context of African economies. The paper employs threshold regression techniques to examine whether African countries benefit more from exports when they reach a certain level of development or openness. Our results suggest that there is indeed a positive relationship between exports and growth in Africa. The threshold regression analysis also suggests that it is not necessary for a country to reach a certain level of development or to have an existing export base for this relationship to hold, though it is found that the relationship is stronger for countries that experience higher rates of export growth.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 42 (2006)
Issue (Month): 6 ()
Pages: 1056-1074

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Handle: RePEc:taf:jdevst:v:42:y:2006:i:6:p:1056-1074

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Citations

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Cited by:
  1. Wim Naudé, 2011. "Economic Development in Sub-Saharan Africa: The Case of the Big Four," Working Papers 2011/34, Maastricht School of Management.
  2. Kremer, Stephanie & Bick, Alexander & Nautz, Dieter, 2009. "Inflation and growth: new evidence from a dynamic panel threshold analysis," Discussion Papers 2009/9, Free University Berlin, School of Business & Economics.
  3. Fernando Seabra & Jaqueson K. Galimberti, 2011. "Conditioned Export-Led Growthhypothesis: A Panel Threshold Regressions Approach," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting] 049, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  4. Henri Bezuidenhout, 2009. "A regional perspective on Aid and FDI in Southern Africa," Working Papers 147, Economic Research Southern Africa.
  5. Francis Teal & Markus Eberhardt, 2009. "Econometrics for Grumblers: A New Look at the Literature on Cross-Country Growth Empirics," Economics Series Working Papers CSAE WPS/2009-07, University of Oxford, Department of Economics.
  6. Naudé, Wim, 2010. "Development Progress in sub-Saharan Africa: Lessons from Botswana, Ghana, Mauritius and South Africa," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  7. Fugarolas, Guadalupe & Mañalich, Isis & Matesanz, David, 2007. "Are Exports Causing Growth? Evidence On International Trade Expansion In Cuba, 1960-2004," MPRA Paper 6323, University Library of Munich, Germany.

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