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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

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Blaise Gnimassoun
  • Valérie Mignon

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

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 found evidence that while trade between Africa and industrialised 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 industrialised countries mainly occurs through an improvement in total factor productivity.
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  • Dramane Coulibaly & Blaise Gnimassoun & Valérie Mignon, 2017. "Growth-enhancing effect of openness to trade and migrations: What is the effective transmission channel for Africa?," Post-Print hal-01628730, HAL.
    • Handle: RePEc:hal:journl:hal-01628730
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    Cited by:

    1. Blaise Gnimassoun & John C. Anyanwu, 2019. "The Diaspora and economic development in Africa," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(4), pages 785-817, November.
    2. Blaise Gnimassoun, 2020. "Regional Integration: Do Intra-African Trade and Migration Improve Income in Africa?," International Regional Science Review, , vol. 43(6), pages 587-631, November.
    3. Karanfil, Fatih & Omgba, Luc Désiré, 2023. "The energy transition and export diversification in oil-dependent countries: The role of structural factors," Ecological Economics, Elsevier, vol. 204(PB).
    4. Fabien Candau & Geoffroy Guepie & Reine Kouakou, 2018. "In Gravity no Veritas: Dubious Trade Elasticiy and Weak Effects of Regional Trade Agreements in Africa," Working Papers hal-02625930, HAL.
    5. Blaise Gnimassoun & John Anyanwu, 2019. "Working Paper 308 - The Diaspora and Economic Development in Africa," Working Paper Series 2434, African Development Bank.
    6. Blaise Gnimassoun, 2019. "How to Boost the Impact of Intra-African Trade on Income in Africa?," Open Economies Review, Springer, vol. 30(3), pages 541-557, July.
    7. Koffi Dumor & Yao Li & Ma Yongkai & Enock Mintah Ampaw & Hafez Komla Dumor, 2022. "Evaluating the belt and road initiative effects on trade and migration: Evidence from the East African community," African Development Review, African Development Bank, vol. 34(1), pages 16-28, March.
    8. Blaise Gnimassoun & C. John Anyanwu, 2018. "The Diaspora And Economic Development In Africa," Working Papers hal-04141793, HAL.

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    Keywords

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    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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