TRADE BALANCE, INSTITUTIONS AND ECONOMIC GROWTH IN SUB-SAHARAN AFRICA
Timothy Terwase Nev, Charity Philip Sidi, Ilemona Adofu and Obadiah Jonathan Gimba
Volume 9 Issue 3
Abstract
The study examines the impact of trade balance, institutions on economic growth in sub-Saharan African. The study employed a panel data of 23 Sub-Saharan Africa out of the 48 countries that made up SSA, the period which span from 2002 to 2022, the data were sourced from world development indicator and world governance indicator. The study employed econometric analyses involving the Panel Unit Root test, the panel bound cointegration and autoregressive distributed lag (ARDL) was use as the techniques for analysis. The result of the findings shows that trade openness which is a proxy for trade balance was found to have a positive and significant relationship with gross domestic product. Institutions on the other hand has a positive correlation with GDP but was found not to be statistically significant. The study recommends that government should encourage trade balance through agreements like free trade agreement, to promote economic growth. Keyword: Trade Balance, Institution Quality, Gross Domestic Product, Panel Estimation, Sub-Saharan Africa.
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