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Does Africa Really Benefit from Trade?

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Abstract

We empirically analyse the impact of trade on income levels in the sub-Saharan Africa countries. The results indicate that the linkage between both variables is negative for these countries. This outcome may explain the negative sign of the Africa dummy in income (or growth) regressions.

Suggested Citation

  • Matthias Busse & José Luis Groizard, 2006. "Does Africa Really Benefit from Trade?," DEA Working Papers 21, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    • Handle: RePEc:ubi:deawps:21
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    1. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
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    2. Kohnert, Dirk, 2008. "EU-African Economic Relations: Continuing Dominance, Traded for Aid?," MPRA Paper 9434, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • F1 - International Economics - - Trade
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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