The Relationship Between Trade Openness and Economic Growth: The Case of Ghana and Nigeria
<p>This study purposed to determine the long run relationship between trade openness and economic growth in Ghana and Nigeria covering the period between 1980 and 2016. It incorporated investment, exchange rates and inflation as the additional variables. To test for stationarity of the data, t...
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| Format: | Article |
| Language: | English |
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EconJournals
2018-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/5557 |
| _version_ | 1797919923272417280 |
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| author | Hlalefang Khobai Nwabisa Kolisi Clement Moyo |
| author_facet | Hlalefang Khobai Nwabisa Kolisi Clement Moyo |
| author_sort | Hlalefang Khobai |
| collection | DOAJ |
| description | <p>This study purposed to determine the long run relationship between trade openness and economic growth in Ghana and Nigeria covering the period between 1980 and 2016. It incorporated investment, exchange rates and inflation as the additional variables. To test for stationarity of the data, the augments Dickey-Fuller (ADF) (Dickey and Fuller, 1981), the Phillips and Perron (1988) and the DF-GLS test proposed by Elliot, Rothenberg and Stock (1996) were used. The Autoregressive distributed lag (ARDL) model was employed in this study to examine the long run relationship between the variables. The findings of the study suggested existence of a long run relationship among the variables for both countries. The results further showed that trade openness has a positive impact on economic growth and significant at the 1% level in Ghana while in Nigeria trade openness has a negative but insignificant effect on economic growth. These results imply that different policy measures should be put into place for each of these two countries.</p><p><strong>Keywords:</strong> Trade Openness, Economic growth, ARDL, Nigeria and Ghana</p><p><strong>JEL Classifications:</strong> C1, F14, F41, F43</p> |
| first_indexed | 2024-04-10T13:53:07Z |
| format | Article |
| id | doaj.art-57894b5fa2b242b18fb2e7dd5d845d4a |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:53:07Z |
| publishDate | 2018-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-57894b5fa2b242b18fb2e7dd5d845d4a2023-02-15T16:10:35ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382018-01-018177823077The Relationship Between Trade Openness and Economic Growth: The Case of Ghana and NigeriaHlalefang Khobai0Nwabisa Kolisi1Clement Moyo2Nelson Mandela Metropolitan UniversityNelson Mandela UniversityNelson Mandela University<p>This study purposed to determine the long run relationship between trade openness and economic growth in Ghana and Nigeria covering the period between 1980 and 2016. It incorporated investment, exchange rates and inflation as the additional variables. To test for stationarity of the data, the augments Dickey-Fuller (ADF) (Dickey and Fuller, 1981), the Phillips and Perron (1988) and the DF-GLS test proposed by Elliot, Rothenberg and Stock (1996) were used. The Autoregressive distributed lag (ARDL) model was employed in this study to examine the long run relationship between the variables. The findings of the study suggested existence of a long run relationship among the variables for both countries. The results further showed that trade openness has a positive impact on economic growth and significant at the 1% level in Ghana while in Nigeria trade openness has a negative but insignificant effect on economic growth. These results imply that different policy measures should be put into place for each of these two countries.</p><p><strong>Keywords:</strong> Trade Openness, Economic growth, ARDL, Nigeria and Ghana</p><p><strong>JEL Classifications:</strong> C1, F14, F41, F43</p>https://www.econjournals.com/index.php/ijefi/article/view/5557 |
| spellingShingle | Hlalefang Khobai Nwabisa Kolisi Clement Moyo The Relationship Between Trade Openness and Economic Growth: The Case of Ghana and Nigeria International Journal of Economics and Financial Issues |
| title | The Relationship Between Trade Openness and Economic Growth: The Case of Ghana and Nigeria |
| title_full | The Relationship Between Trade Openness and Economic Growth: The Case of Ghana and Nigeria |
| title_fullStr | The Relationship Between Trade Openness and Economic Growth: The Case of Ghana and Nigeria |
| title_full_unstemmed | The Relationship Between Trade Openness and Economic Growth: The Case of Ghana and Nigeria |
| title_short | The Relationship Between Trade Openness and Economic Growth: The Case of Ghana and Nigeria |
| title_sort | relationship between trade openness and economic growth the case of ghana and nigeria |
| url | https://www.econjournals.com/index.php/ijefi/article/view/5557 |
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