TRADE OPENNESS AND ECONOMIC GROWTH IN SOUTH AFRICA, ALGERIA, NIGERIA AND EGYPT
Abstract
Persistent growth performance disparities among African economies despite increased trade openness put into question the effectiveness of trade openness in driving sustainable development. This study explores the influence of trade openness on economic growth in South Africa, Algeria, Nigeria, and Egypt (SANE) using data from annual data spanning 1986-2023 obtained from World Development Indicators. The study is based on the endogenous growth theory with trade openness, inflation, foreign direct investment (FDI), and gross fixed capital formation (GFCF) as explanatory variables. Using the Autoregressive Distributed Lag (ARDL) bounds testing method, long-run as well as short-run dynamics are estimated. The results indicate that trade openness is a strong supporter of long-run economic growth in South Africa and Algeria, whereas FDI and GFCF are the main drivers in Egypt. By contrast, none of the macroeconomic determinants have a persistent influence on growth in Nigeria with far-reaching implications for structural and institutional issues. Inflation always represents a negative contribution to growth in the majority of countries, which underscores the importance of macroeconomic stability. The study highlights the country-specificity of the macroeconomic variables' influence on growth. Based on this result, the paper recommends that certain policies encouraging greater trade integration, investment efficiency, and inflation control are required to guarantee long-term growth in the SANE region.
This article is available as a PDF download
Published in SALEM JOURNAL OF BUSINESS AND ECONOMY
ISSN: 627-44669
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
DISRUPTIVE TECHNOLOGIES ON ORGANIZATIONAL PERFORMANCE OF BREWERY FIRMS IN SOUTH-SOUTH, NIGERIA
UDOIDIONG, ANIEKEME OKON, Prof, G.A. EMEROLE, Prof (Mrs) J.C. IHEMEJE
Aug 4, 2026
The study investigated the effect of disruptive technologies on organizational performance of brewer...
View ArticleENVIROMENTAL ACCOUNTING DISCLOSURE,OPERATIONAL EFFICIENCIES AND FINANCIAL PERFORMANCE OF LISTED NON-FINANCIAL FIRMS IN NIGERIA.
IBRAHIM ADEYINKA ADERIBIGBE, ADEWUMI ZAID ADEYEMI, OLUWATIMILEYIN ESTHER ADENLE, FATIMAT OLAJIDE
Jul 15, 2026
The study examined environmental accounting disclosure,operational efficiencies and financial perfor...
View ArticleEXAMINING THE LINK BETWEEN PUBLIC HEALTH EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA
ADESUYI, OLUWABUKOLA OMOBOLA (PhD), JULIET O. ONONGHA, ADEGBOYE VICTOR OKIKIOLUWA
Jul 9, 2026
Purpose - This study examined the relationship between public health expenditure and economic growth...
View Article