International Trade, Corruption and Economic Growth: Evidence from Selected Sub-Saharan Countries

Busayo Aderounmu

busayo.aderounmu@covenantuniversity.edu.ng
Covenant University, Department of Economics and Development Studies, Ota, Nigeria (Nigeria)
https://orcid.org/0000-0002-8652-394X

Eniola Ayoade


Covenant University, Centre for Economic Policy and Development Research (CEPDeR), Ota, Nigeria (Nigeria)

Emmanuel Oni


University of Lagos, Akoka, Lagos (Nigeria)

Abstract

Sustainable development goal 17 emphasizes the importance of international trade in achieving inclusive growth. Likewise, countries with high level of corruption will experience limited growth. In order to examine the causality, this study considers the impact of international trade and corruption on the economic growth of selected sub-Saharan African countries (Angola, Ghana, Kenya, Nigeria, and South Africa) from the period 2000-2019. The granger causality test and fixed effect method of estimation were adopted. The result of the granger causality tests shows that there is no causality between import and economic growth, there is unidirectional causality between export and economic growth and there is no causality between control of corruption and economic growth. Furthermore, it was discovered that export, import, and control of corruption have a positive impact, 25.4%, 32%, 45.5% respectively, on the economic growth of selected sub-Saharan African countries. Hence from these findings, policies towards export promotion should be encouraged as export is crucial for the economic growth of these countries and policies to curb corruption should be implemented in order to promote economic growth in the selected sub-Saharan African countries.


Keywords:

international trade, corruption, economic growth, export, import, Sub-Saharan Africa

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Published
2022-07-03

Cited by

Aderounmu, B., Ayoade, E., & Oni, E. (2022). International Trade, Corruption and Economic Growth: Evidence from Selected Sub-Saharan Countries. Problemy Ekorozwoju, 17(2), 161–165. https://doi.org/10.35784/pe.2022.2.17

Authors

Busayo Aderounmu 
busayo.aderounmu@covenantuniversity.edu.ng
Covenant University, Department of Economics and Development Studies, Ota, Nigeria Nigeria
https://orcid.org/0000-0002-8652-394X

Authors

Eniola Ayoade 

Covenant University, Centre for Economic Policy and Development Research (CEPDeR), Ota, Nigeria Nigeria

Authors

Emmanuel Oni 

University of Lagos, Akoka, Lagos Nigeria

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