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Trade openness and economic growth in East African Community economies: A panel causality test

Journal of Economics Library

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Title Trade openness and economic growth in East African Community economies: A panel causality test
 
Creator KISAVA, Zakayo S.;

Zakayo S. Kisava1

Graduate School of Social Science- Dokuz Eylul University, Turkey

   Email: zakayo.kisava@ogr.deu.edu.tr

Associate Professor, Dr. Kerim Eser Afsar2

Department of Economics -Dokuz Eylul University, Turkey

Email: eser.afsar@deu.edu.tr


MYOVELLA, Godwin A.; Department of Economics and Statistics, University of Dodoma
 
Subject —
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Description Abstract. In spite of financial liberalization that has been discussed and studied over the past decades, the debate for the East African Community (EAC) still remain open on the relationship between trade openness and economic growth that has a link with trade-economic policies. This paper analyzes the relationship by employing the modern methodology of Dumistrescu & Hurlin (2012) Panel Causality test, The Test involved a scope of 46 years from 1970-2016. The empirical finding shows that there is a bidirectional movement (causality) as trade openness increase or relaxed lead to the growth of the economy in the East African Community. The results are supported by the endogenous growth theory that openness increases economic growth. There is a feedback relationship. The main operational implication of these empirical results is that the governments of the East African economies should dismantle barriers to trade to make sure that their intended objective is not ephemeral.Keywords. East African Community, Economic growth, Panel causality test, Trade openness.JEL. C59, F43, O24.
 
Publisher Journal of Economics Library
 
Contributor —
 
Date 2018-07-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.kspjournals.org/index.php/JEL/article/view/1670
10.1453/jel.v5i2.1670
 
Source Journal of Economics Library; Vol 5, No 2 (2018): June; 161-168
2149-2379
 
Language eng
 
Relation http://www.kspjournals.org/index.php/JEL/article/view/1670/1633
http://www.kspjournals.org/index.php/JEL/article/downloadSuppFile/1670/852
 
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http://creativecommons.org/licenses/by-nc/4.0