The Role of Exports, FDI and Imports in Development: Evidence from Sub-Saharan African Countries

Posted: 24 Aug 2014

See all articles by Abdullahi Ahmed

Abdullahi Ahmed

Victoria University - Centre for Strategic Economic Studies

Enjiang Cheng

Victoria University - Centre for Strategic Economic Studies

George Messinis

Victoria University - Victoria Institute of Strategic Economic Studies

Date Written: August 22, 2011

Abstract

The disappointing economic performance of Sub-Saharan African (SSA) economies in the late 1980s prompted reforms in foreign trade and Foreign Direct Investment (FDI) in the early 1990s. Using the Autoregressive Distributed Lag (ARDL) approach and Pedroni panel estimation procedures that allow for heterogeneity, this study found that exports and FDI have a significant impact on economic growth. Granger-type causality tests show the interrelatedness of exports, FDI, imports and income variables. The results also provide evidence of a two-stage causal chain of exports, imports and income. This article calls for more market-oriented policy reforms in SSA countries.

Keywords: Africa, FDI, Causality, Imports, Exports

JEL Classification: C51, F14, F43

Suggested Citation

Ahmed, Abdullahi and Cheng, Enjiang and Messinis, George, The Role of Exports, FDI and Imports in Development: Evidence from Sub-Saharan African Countries (August 22, 2011). Applied Economics, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2485662

Abdullahi Ahmed

Victoria University - Centre for Strategic Economic Studies ( email )

P.O. Box 14428
Melbourne, Victoria 8001
Australia

Enjiang Cheng

Victoria University - Centre for Strategic Economic Studies ( email )

Level 13
300 Flinders St
Melbourne, Victoria 3000
Australia

George Messinis (Contact Author)

Victoria University - Victoria Institute of Strategic Economic Studies ( email )

P.O. Box 14428
Melbourne, Victoria 8001
Australia

HOME PAGE: http://www.vises.org.au/staff/gmessinis.htm

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