TRADE LIBERALIZATION AND ECONOMIC GROWTH IN SELECTED WEST AFRICAN COUNTRIES

1976-2023

Abstract

This research examines the relationship between trade liberalization and economic growth in selected   West   African   countries   (Cote d‟Ivoire, Ghana and Nigeria)   the  choice   of these countries  is  as   a  result   of  steady   GDP  growth  over  the years, using secondary data in a multivariate   panel    framework   for   the  period   1976 - 2023.   The  main objective  was to establish  the   effects   of  trade  liberalization   on economic  growth  in these  countries. The Autoregressive    Distributed     Lag   (ARDL)   bound   tests and   other  diagnostic   tests  were   employed   for  data estimation.   The    results   indicated    long run    relationship    between    trade   liberalization   and economic   growth  in Cote d‟Ivoire, Ghana  and  Nigeria.  The   relationship  is   positive  and  significant  for  the  three   countries.  In  the long run, the combination of   other macroeconomic variables like investment,   human capital,   net inflow  of FDI and the exchange  rate   complement   the    contribution     of     trade   to    economic growth.   Therefore,     these    countries      should     promote      appropriate    trade   policies devoted   to    foster  increased   local   production   of  manufactured  and  agricultural goods to    reduce  importation    and  stimulate  exports,   as a  strategy  to  boost  economic  growth