Globalisation outcomes and the real output in the sub-Saharan Africa LICs: a cointegration analysis

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Buysse J., Can M., GÖZGÖR G.

ECONOMIC RESEARCH-EKONOMSKA ISTRAZIVANJA, cilt.31, sa.1, ss.338-351, 2018 (SSCI İndekslerine Giren Dergi) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 31 Konu: 1
  • Basım Tarihi: 2018
  • Doi Numarası: 10.1080/1331677x.2018.1426471
  • Sayfa Sayıları: ss.338-351


This article examines the effects of trade openness, foreign direct investment (FDI), and product diversification of exports to the real gross domestic product (GDP) per capita in 11 sub-Saharan Africa Low Income Countries (LIC): Benin, Burkina Faso, the Democratic Republic of Congo, Kenya, Liberia, Madagascar, Malawi, Niger, Rwanda, Sierra Leone and Zimbabwe over the period 1970-2010. We consider time series analysis, including structural break(s) and cointegration modelling. The results indicate that long-run relationships only exist in Kenya, Liberia, Malawi and Sierra Leone. We also document that (1) FDI spurs the real GDP per capita in Kenya; (2) trade openness positively contributes to the real output in Liberia; (3) trade openness is negatively associated with the real GDP per capita in Malawi in the short-run; and (4) product diversification of exports promotes the real GDP per capita in Sierra Leone.