Trade Policy And Economic Growth In Sub Saharan Africa A Panel Data Approach

Despite a number of multi-country case studies utilizing comparable analyticalrnframeworks, numerous econometric studies using large cross-country data sets, andrnimportant theoretical advances in growth theory, there is still disagreement amongrneconomists concerning how a country's international economic policies and its rate ofrneconomic growth interact. The central objective of this paper is to empirically assess thernlink between trade policy and economic growth in Sub Saharan Africa countries. Apartrnfrom reviewing different literatures, this study also provides empirical evidence on thernrelationship between economic growth and trade policies. In doing so, the study uses arnpanel data covering 47 Sub Saharan Africa countries over the periods 2000 – 2008. Thernestimation support claims that openness to international trade stimulates bothrneconomic growth and investment. Besides, trade policies such as average weighted tariffrnrate and real effective exchange rate have both direct and indirect impacts on economicrngrowth.

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