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Trade Liberalization and Economic Growth – A Study on Ghana, Nigeria and Cote d`Ivoire

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  • Francis Amoasah

Abstract

The study considers the relationship between trade liberalization and economic growth among three sub-Saharan African countries: Ghana, Nigeria, and Cote d’Ivoire. We find no statistically significant increase in the economic growth of the countries following trade liberalization. However, post-trade-liberalization exports (and trade) of the countries did increase. Yet, the need for the promotion of exports in high value-added industries remain an age long unduly overdue problem. Increases in imports following liberalization dominate the increases in exports, export earnings remain susceptible to international price volatility and a chunk of the export commodities remain unprocessed as well as broadly narrow in range. The EU, US and China are the major trading partners to Africa, even more (in percentage terms) than the continent trades among itself. While reasonable efforts are being made on the African Continental Free Trade Area (AfCFTA), it should be seen that regional economic integration does not automatically improve growth. However, proper desegregation with the needed checks and balances may help yield for Africa some gains from trade. It is time, therefore, that the countries devise important measures to ensure that these envisaged significant gains from trade are duly realised.

Suggested Citation

  • Francis Amoasah, 2018. "Trade Liberalization and Economic Growth – A Study on Ghana, Nigeria and Cote d`Ivoire," FIW Working Paper series 188, FIW.
    • Handle: RePEc:wsr:wpaper:y:2018:i:188
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    References listed on IDEAS

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    Cited by:

    1. John Bosco Nnyanzi & Susan Kavuma & John Sseruyange & Aisha Nanyiti, 2022. "The manufacturing output effects of infrastructure development, liberalization and governance: evidence from Sub-Saharan Africa," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(2), pages 369-400, June.

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    More about this item

    Keywords

    trade liberalization; convergence; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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