Export Instability And Economic Growth In Sub Sahara African Countries

The study attempts to investigate the impact of uncertainty generated by export earningrninstability on economic growth. Through this investigation the degree to which outwardrnoriented economic policy will be reliable for the purpose of accelerating economic growth isrnalso be examined.rnAfter detail review of theoretical and empirical foundation of the policy, a model that linksrnvariable of uncertainty to economic performance is developed. Moreover, from the model, therncondition under which outward oriented economic policy contributes favourably, to economicrngrowth is set theoretically. Furthermore, the model and the conditions were estimated based onrnavailable statistical data.rnFrom the estimates, it can be inferred that, to benefit from outward oriented economic policy inrnterms of economic growth, the stable component of export revenue of the region has to growrnsubstantially. if this condition is not satisfied the policy acts adversely on economicrnperformance. Lastly, if the condition cannot be met and the adverse effect is not affordable, thernestimates indicate that there should exist an external mechanism that absorbs the growth ofrnuncertainty coming from international trade.

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