Trade openness, institutions and economic growth in Sub-Saharan Africa

Authors

  • Taiwo AKINLO Department of Economics, Adeyemi College of Education Ondo, Ondo State, Nigeria
  • Charles Olalekan OKUNLOLA Institute of Peace and Conflict Resolution, CBD, Abuja, Nigeria

DOI:

https://doi.org/10.22437/ppd.v8i6.10653

Keywords:

Corruption, Economic growth, Government stability, Trade, Institutions

Abstract

This research investigates the interactive effect of trade openness and the institutional quality on economic growth in sub-Sahara Africa. The sample consists of 38 sub-Saharan African countries and covers the period 1986-2015. Pooled OLS, fixed effect, and Dynamic GMM were used as estimation techniques. The empirical section used a nonlinear growth regression specification that interacts trade openness with law and order, bureaucratic quality, corruption, government stability, and democratic accountability. The study found that corruption, government stability, law and order, and bureaucratic quality as institutional quality variables harm economic growth. The interaction of trade openness and institutional quality variables positively impacted economic growth. It is an indication that trade openness better impacted economic growth in the presence of high-quality institutional variables.

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Published

2021-02-01

How to Cite

AKINLO, T., & OKUNLOLA, C. O. (2021). Trade openness, institutions and economic growth in Sub-Saharan Africa. Jurnal Perspektif Pembiayaan Dan Pembangunan Daerah, 8(6), 541 - 560. https://doi.org/10.22437/ppd.v8i6.10653