TRADE OPENNESS AND ECONOMIC GROWTH IN SOUTH AFRICA, ALGERIA, NIGERIA AND EGYPT
Abstract
Persistent growth performance disparities among African economies despite increased trade openness put into question the effectiveness of trade openness in driving sustainable development. This study explores the influence of trade openness on economic growth in South Africa, Algeria, Nigeria, and Egypt (SANE) using data from annual data spanning 1986-2023 obtained from World Development Indicators. The study is based on the endogenous growth theory with trade openness, inflation, foreign direct investment (FDI), and gross fixed capital formation (GFCF) as explanatory variables. Using the Autoregressive Distributed Lag (ARDL) bounds testing method, long-run as well as short-run dynamics are estimated. The results indicate that trade openness is a strong supporter of long-run economic growth in South Africa and Algeria, whereas FDI and GFCF are the main drivers in Egypt. By contrast, none of the macroeconomic determinants have a persistent influence on growth in Nigeria with far-reaching implications for structural and institutional issues. Inflation always represents a negative contribution to growth in the majority of countries, which underscores the importance of macroeconomic stability. The study highlights the country-specificity of the macroeconomic variables' influence on growth. Based on this result, the paper recommends that certain policies encouraging greater trade integration, investment efficiency, and inflation control are required to guarantee long-term growth in the SANE region.
This article is available as a PDF download
Published in SALEM JOURNAL OF BUSINESS AND ECONOMY
ISSN: 627-44669
This article appears in our peer-reviewed academic journal
View JournalRelated Articles
Explore similar research in our collection
CONTRIBUTORY PENSION AS A PANACEA FOR ECONOMIC DEVELOPMENT: THE NIGERIAN EXPERIENCE
FRIDAY BARIDOO
Apr 9, 2026
The Contributory Pension Scheme (CPS) in Nigeria represents a major reform aimed at addressing the i...
View ArticleAN EMPIRICAL INVESTIGATION INTO THE EFFECT OF HUMAN RESOURCES ACCOUNTING ON FINANCIAL PERFORMANCE: EVIDENCE FROM QUOTED OIL AND GAS COMPANIES IN NIGERIA
Aina Grace Oluwatosin, Oyetunji Oluwayomi Taiwo, Lawal Babatunde Akeem, Kolapo Damilola
Feb 19, 2026
With the growing recognition of human capital as a strategic asset, there is increasing concern abou...
View ArticleCORPORATE SOCIAL RESPONSIBILITY ACCOUNTING AND FINANCIAL PERFORMANCE OF OIL AND GAS COMPANIES IN NIGERIA.
Prof. Ogbonna, G.N. (PhD, FCA), Igwe, Christian Chukwuma M.SC. (UPH)
Feb 16, 2026
This study evaluates the influence of corporate social responsibility reporting on firm perform...
View Article