Liberalization of Trade and Its Impact on the Economics of Developing Countries in Africa: Case Study of Some Selected Developing Africa Countries
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Abstract
This study's aims at realizing impacts of liberalization in trade, on the economic growth in some selected developing Africa economies by augmenting in line with standard production function. A panel fix effect model was used in estimating the impacts of the macroeconomic variables in the economic growth. Real GDP in millions of US$ are used for proxy in economic growth. The capital stock series, in each cross-section, were generated from the formation of gross fix capital, and that of GDP from trade was also taken a proxy for liberalization of trade. Outcomes - Result shows a positive, significant impact on the selected macroeconomic variables, to economic growth, except, that on trade liberalization index. A unit increased in trade liberalization, deteriorates economic growth, in any of these developing countries by -280.86 million US$. The Implications of this paper - The significant negative impact indicates the relatively greater share of import than exports. These developing nations should develop production side and adopt export promotion policies besides controlling of cutting down on importation in achieving the sustainable growth. Uniqueness - This study used an augmented production function, constructed capital stock in each individual country.
Keywords
Liberalization of Trade, Developing Countries Economics
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