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An Investigation of Openness and Economic Growth Using Panel Estimation

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Author Info

  • Pei-Pei Chen

    () (Department of Economics, University of Pretoria)

  • Rangan Gupta

    () (Department of Economics, University of Pretoria)

Abstract

This paper examines the impact of trade openness on economic growth for the SADC region in Africa over the period of 1990 to 2003. Based on a structure consistent with the endogenous growth theory, we find that trade openness has had a strong positive impact on economic growth in this region over this period. Our results are robust across alternative specifications and methodologies. The study also highlights the role of education in strengthening the effect of openness on sustainable growth, via better absorption of knowledge and technological spillovers from trade liberalization.

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Bibliographic Info

Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200622.

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Length: 30 pages
Date of creation: Nov 2006
Date of revision:
Handle: RePEc:pre:wpaper:200622

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Related research

Keywords: Trade Openness; Growth; Endogenous Growth Theory;

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Cited by:
  1. Haq, Munshi Masudul, 2008. "Growth and openness: empirical evidence from Bangladesh," MPRA Paper 35732, University Library of Munich, Germany.

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