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The Impact of Trade Balance on Economic Growth in West African Countries

Author

Listed:
  • Oyegun Gbenga

    (University of Delta, Agbor, Delta State, Nigeria)

  • Dr Abu Bakar Razali

    (University of Delta, Agbor, Delta State, Nigeria)

Abstract

This study examined the impact of trade balance on economic growth in West Africa countries using panel data of fifteen countries from 2009-2023. It employed the mean group (PMG)/ARDL to explore the short-run and long-run relationship between economic growth proxied by real GDP per capita and trade balance, exchange rates, imports, and exports as independent variables based on the outcome of the diagnostic tests performed. The results showed that trade balance posed positive and significant impact on economic growth of the countries in the sub region in both short run and long run analyses. The study also found that exchange rate (EXRT), import demand (IMPY), and export (EXPT) fosters a positive and significant effect on economic growth in the long run in West Africa for the period covered in the study. It is also recommended that West African countries should pursue export promotion drives linked with credit economic stimulus policies such as investment promotion and value addition to the vast natural resources of the continent. spur economic growth and development.

Suggested Citation

  • Oyegun Gbenga & Dr Abu Bakar Razali, 2025. "The Impact of Trade Balance on Economic Growth in West African Countries," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(8), pages 2375-2391, August.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-8:p:2375-2391
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    References listed on IDEAS

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