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Assessing the Impact of One Aspect of Globalization on Economic Growth in Africa

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  • Mina Baliamoune-Lutz

Abstract

Using panel data, this paper explores the effects of openness to international trade and foreign direct investment (FDI) on economic growth. Fixed-effect and adjusted fixed-effect (regional-effect) estimations yield results consistent with the hypothesis of conditional convergence. FDI has a significant positive impact on economic growth in all specifications. However, openness to trade does not seem to enhance growth in poor countries. The empirical findings fail to substantiate the proposition that greater openness facilitates convergence to higher income levels.

Suggested Citation

  • Mina Baliamoune-Lutz, 2002. "Assessing the Impact of One Aspect of Globalization on Economic Growth in Africa," WIDER Working Paper Series DP2002-91, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:dp2002-91
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    Cited by:

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    2. Tony Addison & Mina Baliamoune-Lutz, 2003. "Institutional Quality, Reforms and Integration in the Maghreb," WIDER Working Paper Series DP2003-76, World Institute for Development Economic Research (UNU-WIDER).
    3. Rahman, Tauhidur & Mittelhammer, Ronald C., 2006. "Measuring the Impact of Globalization on the Well-being of the Poor: Methodology and an Application to Africa," 2006 Annual meeting, July 23-26, Long Beach, CA 21100, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Siham Matallah & Amal Matallah, 2017. "Do Globalization and Economic Freedom Trigger Economic Growth in MENA Countries? Empirical Evidence and Policy Implications," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(2), pages 76-87, June.
    5. Akyeampong, Emmanuel & Fofack, Hippolyte, 2013. "The contribution of African women to economic growth and development in post-colonial Africa : historical perspectives and policy implications," Policy Research Working Paper Series 6537, The World Bank.
    6. Charles Ackah, & Oliver Morrissey, 2007. "Trade Liberalisation is Good for You if You are Rich," Discussion Papers 07/01, University of Nottingham, CREDIT.
    7. Afonso, Oscar & Neves, Pedro Cunha & Thompson, Maria, 2016. "The skill premium and economic growth with costly investment, complementarities and international trade of intermediate goods," Japan and the World Economy, Elsevier, vol. 37, pages 73-86.
    8. Ousseini Hamadou, 2011. "The Impact of FDIs Flows on the Nigerien Economic Growth," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 2(2), pages 16-26, July.
    9. Mina Baliamoune-Lutz, 2009. "Entrepreneurship and Reforms in Developing Countries," WIDER Working Paper Series RP2009-04, World Institute for Development Economic Research (UNU-WIDER).
    10. Mina Baliamoune-Lutz, 2011. "Growth by Destination (Where You Export Matters): Trade with China and Growth in African Countries," African Development Review, African Development Bank, vol. 23(2), pages 202-218.
    11. Mina Baliamoune-Lutz, 2008. "On Growth and Development," ICER Working Papers 13-2008, ICER - International Centre for Economic Research.

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