Causality Testing between Trade Openness, Foreign Direct Investment and Economic Growth: Fresh Evidence from Sub-Saharan Africa Countries

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dc.contributor.authorLau, E.
dc.contributor.authorOlabode, Olabisi E.
dc.date.accessioned2019-07-22T15:59:18Z
dc.date.available2019-07-22T15:59:18Z
dc.date.issued2018
dc.description.abstractPrevious works are yet to reach a consensus about the direction of causality between Trade Openness (TO), Foreign Direct Investment (FDI) and Economic Growth (EG), in particular, using a panel data analysis for Sub-Saharan African (SSA) countries. This study adopts first and second generation econometric methods to analyse the relationships between trade openness, FDI and economic growth in Sub-Saharan Africa countries over the period 1980-2016. The Westerlund cointegration, the Common Correlated Effect Mean Group (CCEMG), and the Bootstrapp Granger causality econometric techniques were adopted. Findings show there is a cross-sectional dependence among the 23 SSA countries examined. A long-run cointegration among trade openness, FDI and economic growth also exists. A positive and significant relationship exists between trade openness and economic growth. FDI indicates a positive and significant relationship with economic growth. The panel error correction term (ECT) result further confirmed the long-run relationship among the variables. A bidirectional causal relationship exists among trade openness, foreign direct investment net inflows and economic growth for Gambia, Senegal and South African countries.en_US
dc.identifier.citationOlabisi, O. E., & Lau, E. (2018). Causality Testing between Trade Openness, Foreign Direct Investment and Economic Growth: Fresh Evidence from Sub-Saharan African Countries. Economia Internazionale/International Economics, 71(4), 437-464.en_US
dc.identifier.urihttp://repository.elizadeuniversity.edu.ng/handle/20.500.12398/383
dc.language.isoenen_US
dc.publisherCamera di Commercio di Genovaen_US
dc.subjectJEL-codes: F14 F43 O49 O55en_US
dc.subjectTrade Openness (search for similar items in EconPapers)en_US
dc.subjectFDIen_US
dc.subjectReal GDP per capitalen_US
dc.subjectPooled Mean Groupen_US
dc.titleCausality Testing between Trade Openness, Foreign Direct Investment and Economic Growth: Fresh Evidence from Sub-Saharan Africa Countriesen_US
dc.typeArticleen_US
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