Can trade liberalization stimulate economic growth in Africa?

This paper examines changes in economic growth that are likely to result from changes in trade policies, exports, and investment in 12 sub-Saharan African (SSA) countries. Using a vector error correction model (VECM), our results indicate that trade policies, exports, and investment rate shocks have a significant impact on economic growth in 10 of the 12 SSA countries. This suggests that it is possible to stimulate economic growth in some African countries through an outward-looking strategy of export expansion. More significantly, the results further suggest the importance as well as the need for African countries to embark on trade liberalization policies in order to enhance economic growth in the current world economy. (C) 1998 Elsevier Science Ltd. All rights reserved.