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Growth-enhancing effect of openness to trade and migrations: What is the effective transmission channel for Africa?

Author

Listed:
  • Dramane Coulibaly
  • Blaise Gnimassoun
  • Valérie Mignon

Abstract

This paper investigates the growth-enhancing effect of openness to trade and to migration by focusing on African countries. Relying on robust estimation techniques dealing with both endogeneity and omitted variables issues, our results put forward the importance of accounting for the type of the partner country. We find evidence that while trade between Africa and industrialized countries has a clear and robust positive impact on Africa's standards of living, trade with developing countries fails to be growth-enhancing. Moreover, our findings show that migration has no significant effect on per capita income in Africa regardless of the partner. Finally, exploring the trade openness transmission channel, we establish that the growth-enhancing effect of Africa's trade with industrialized countries mainly occurs through an improvement in total factor productivity.

Suggested Citation

  • Dramane Coulibaly & Blaise Gnimassoun & Valérie Mignon, 2016. "Growth-enhancing effect of openness to trade and migrations: What is the effective transmission channel for Africa?," EconomiX Working Papers 2016-39, University of Paris Nanterre, EconomiX.
  • Handle: RePEc:drm:wpaper:2016-39
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    File URL: http://economix.fr/pdf/dt/2016/WP_EcoX_2016-39.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Blaise Gnimassoun, 2018. "Regional Integration: Do intra-African trade and migration improve income in Africa?," EconomiX Working Papers 2018-9, University of Paris Nanterre, EconomiX.
    2. repec:kap:openec:v:30:y:2019:i:3:d:10.1007_s11079-018-9519-7 is not listed on IDEAS
    3. Blaise Gnimassoun & C. John Anyanwu, 2018. "The Diaspora And Economic Development In Africa," EconomiX Working Papers 2018-16, University of Paris Nanterre, EconomiX.
    4. Blaise Gnimassoun & John Anyanwu, 2019. "Working Paper 308 - The Diaspora and Economic Development in Africa," Working Paper Series 2434, African Development Bank.

    More about this item

    Keywords

    Trade; International migration; Income per person; Africa.;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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