This paper attempts to investigate the extent which trade openness has had an impact on levels of income and rates growth in a sample 115 developing countries for period 1970–2009. Additionally, assess whether there is level threshold country benefit from international trade, broken down into three mutually exclusive groups countries: low-income, lower middle-income, upper middle-income countries. The main novelty lies use, one hand, new better measure and, other non-stationary heterogeneous...

Abstract This study investigates the effects of trade and facilitation on economic growth in Africa. To do so, we measure by means three indicators, namely trade, export import related costs, constructed using principal component analysis. These addition to several policy‐relevant variables, are used as exogenous variables estimate an augmented model which, with aid a dynamic system GMM estimation technique, properly addresses potential endogeneity concerns. The findings suggest that serves...

The Bhagwati hypothesis predicts a growth enhancing effects of trade (exports) and foreign direct investment (FDI) interaction. This paper tests the validity by investigating extent to which interaction FDI has had an impact on economic for sample 45 African countries over period 1990–2014. To do so, we estimate augmented endogenous model with aid dynamic system generalised method moment (GMM) estimation technique, adequately cope potential endogeneity issues. findings reveal support provide...

This paper investigates the long-run impact of foreign direct investment and trade openness on economic growth in Ghana (1970–2011) within framework endogenous literature. Adopting autoregressive distributed lag bounds testing approach to cointegration results suggest that interaction exports has been crucial fostering growth, thus validating famous Bhagwati hypothesis. From a policy oriented point view, study recommends channeling export-oriented sectors promotion export-led strategies...

Improving social welfare in the developing world remains a top priority on global development agenda, as policymakers and international partners worldwide strive to meet Sustainable Development Goals by 2030.Using data 40 African countries over period 2010-2015, this paper investigates extent which trade facilitation contributes improving Africa.To do so, we construct three indices of capturing infrastructure, institutions, market efficiency from several primary indicators.With regard...

The paper estimate an augmented endogenous economic growth model to investigates the extent which capital flight affects impact of external debt on in selected sub-Saharan African countries. estimations was done with aid a dynamic system generalized method moments technique data from 2000 2015. direct both and as well their combined effect found be negative statistically significant. Additionally, marginal effects results show that low level has no noticeable growth. In contrast, high...

The extent to which trade openness and foreign aid impacts on economic growth, has for years been an issue of global debate. Being one the forerunners adopt liberalisation policies in sub-Saharan Africa, Ghana’s post-liberalisation growth performance received commendations from international institutions. This increased government commitment recent open economy competition. Moreover, inflow over period relatively large. paper employs ARDL bounds testing approach cointegration, investigate...

Purpose The purpose of this paper is to examine macroeconomic determinants interest rate spreads in Ghana for the period 1980-2013. Design/methodology/approach autoregressive distributed lag bounds test approach cointegration and error correction model were used estimation. Findings results indicate that exchange volatility, fiscal deficit, economic growth, public sector borrowing from commercial banks, increase both long short run. Institutional quality reduces run while lending volatility...

The paper empirically examines the extent to which different forms of capital flows (foreign direct investment [FDI], remittances, foreign aid and external debt) affect impact trade (exports) on economic growth in Africa. We do this with an augmented endogenous model we estimate by dynamic system GMM technique endogeneity-expunging efficiency. First, find that whilst has been crucial driving Africa both short- long-run, (FDI, not. Second, our results clearly show that, inflows FDI...

International trade is now an embodiment of the new order global economy, as it ensures movement goods and factors involved in production these from one country to other.However, several authors (see, e.

This study investigates the determinants of trade balance in post-liberalization Ghana, covering period 1984–2015. Specifically, we test validity Marshall-Lerner condition and J-curve effect, further assess effect other macroeconomic variables including household consumption expenditure, government foreign income, money supply domestic prices on balance. The bounds testing approach to cointegration error correction model within a symmetric asymmetric autoregressive distributed lag (ARDL)...

Customers' expectations and perceptions about service quality continue to remain essential for the growth survival of firms. In case seaports, these cannot be overemphasized given that, seaports are at heart international trade. Considering role trade in increasing economic social welfare outcomes countries, improving facilitation through enhanced very essential. Notwithstanding above, it is startling note that little known across Economic Community West African States (ECOWAS) seaports....

Seaports and their efficiency are particularly important for international trade flows the balance. Notwithstanding of seaports, there exists no empirical evidence on how it influences This paper provides effect seaport balance in a sample 27 African countries period 2010-2017. We do this with aid dynamic system Generalised Method Moments (GMM) estimation technique, which addresses potential endogeneity regressors. The results suggest that improves short- long-run periods. From...

The issue of whether capital inflows promote domestic investment has been major concern especially in developing countries considering their massive dependence on these inflows. To this end, we make a case for 25 sub-Saharan African countries, using foreign direct and external debt as proxies inflows, the pooled mean group estimator over period 1981–2010. results reveal that positively impacts investment, but negative impact long run. This implies increase and/or reduction will Africa....

There is ample evidence from economic growth literature that investment accelerates and development of developing countries, which Ghana not an exception. Based on this, recent policies in have focused more encouraging private sector through the financial sector. This paper investigates short- long-run impact for years 1970–2014. Additionally, to find out whether measurement matters investment, several indicators are used. The results, based ARDL bounds testing approach cointegration,...

Seaports and their efficiency remain essential for the success of international trade globally. Notwithstanding this outcome, there is no empirical evidence on how seaport affect performance in Africa. This paper presents an effects To do so, we use data 33 African countries period 2006 to 2018 employ gravity model analysis. The results show that enhances Africa; greater level efficiency, larger extent performance. Based finding, it recommended policy reforms improve seaports Africa should...

Government spending is a reflection of government policy choices. However, the implications growth necessitate an understanding drivers spending. The present paper modifies median voter model to explain by introducing foreign aid, public debt, and democracy. argues that these variables are important for developing countries, hence explaining group countries ignores potential impact debt democracy does not capture fully what determines Such too simplistic less relevant purposes. therefore...

This study investigates the determinants of saving among individuals in informal sector Ghana with a focus on those engaged commercial driving activities. The paper relies primary data and employs descriptive analysis binary probit model as estimation technique. results reveal that drivers who own vehicle themselves, have secondary occupation financial institutions close to their stations are more likely save. In addition, reveals negative relationship between age, education, literacy...

Economic theory predicts a growth enhancing activities of various core functions government. Nonetheless, government spending in non-democratic countries often goes beyond these functions, namely into rent-seeking and non-productive activities. This paper employs the Autoregressive Distributed Lag bounds testing approach to cointegration investigate extent which democracy have had an impact on economic Ghana over period 1960–2008. The empirical results obtained are encouraging, revealing...