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

ADELEYE J. O., ADETEYE, O. S., ADEWUYI M. O., 2015, Impact of International Trade on Economic Growth in Nigeria (1988-2012), International Journal of Financial Research, 6(3): 163-172.
DOI: https://doi.org/10.5430/ijfr.v6n3p163   Google Scholar

AZEEZ B. A., DADA S. O., ALUKO O. A., 2014, Effect of International Trade on Nigerian Economic Growth: The 21st Century Experience, International Journal of Economics, Commerce and Management, 2(10): 1-8.
  Google Scholar

BOAKYE R. N., GYAMFI E., 2017, The Impact of Foreign Trade on the Economic Growth of Ghana, International Journal of Business Marketing and Management, 2(3): 20-26.
  Google Scholar

BRÜCKNER M., LEDERMAN D., 2012, Trade causes Growth in Sub-Saharan Africa, Policy Research Working Papers, https://doi.org/10.1596/1813-9450-6007.
DOI: https://doi.org/10.1596/1813-9450-6007   Google Scholar

DAVID I. O., 2012, Corruption: Definitions, theories and concepts, Arabian Journal of Business and Management Review (OMAN Chapter), 2(4): 37.
DOI: https://doi.org/10.12816/0002257   Google Scholar

DYNAN K., SHEINER L., 2018, GDP as a Measure of Economic Well-being, Working Paper, 43.
  Google Scholar

EGUNJOBI T. A., 2013, An Econometric Analysis of the Impact of Corruption on Economic Growth in Nigeria, Journal of Business Management and Economics, 54(93): 054-065.
  Google Scholar

GEMECHU D., 2002, Exports and Economic Growth in Ethiopia: An Empirical Investigation, First International Conference on the Ethiopian Economy.
  Google Scholar

GETIE A., HAIYUN L., 2019, The Impact of Trade Openess for the Economic Growth of Ethiopia, Journal of Global Economics: 2375-4389.
  Google Scholar

GIL-PAREJA S., LLORCA-VIVERO R., MARTINEZ-SERRANO J. A., 2019, Corruption and International Trade: A Comprehensive Analysis with Gravity, Applied Economic Analysis.
DOI: https://doi.org/10.1108/AEA-06-2019-0003   Google Scholar

GRIECO J. M., IKENBERRY G. J., 2003, State Power and World Markets: The International Political Economy, New York, W.W. Norton Company Inc.
  Google Scholar

HAMEED D., IQBAL A., DEVI, K., 2012, Relationship between Exports and Economic Growth of Pakistan, European Journal of Social Sciences, 32(3): 453-460.
  Google Scholar

HARRIS D. J., 2007, The Classical Theory of Economic Growth, The new Palgrave Dictionary of Economics.
  Google Scholar

HOWITT P., 2010, Endogenous Growth Theory, Economic Growth. The New Palgrave Economics Collection, eds. Durlauf S.N., Blume L.E., Palgrave Macmillan, London, https://doi.org/10.1057/9780230280823_10.
DOI: https://doi.org/10.1057/9780230280823_10   Google Scholar

MATTHEW O., ADEGBOYE F. B., 2014, Trade Openness, Institutions and Economic Growth in sub-Saharan Africa (SSA), Developing Country Studies, 4(8): 18-30.
  Google Scholar

MAURO P., 1995, Corruption and Growth, The Quarterly Journal of Economics, 110(3): 681-712.
DOI: https://doi.org/10.2307/2946696   Google Scholar

MENSAH A., OKYERE, E. 2020, Causality Analysis on Export an Economic Growth Nexus in Ghana, Open journal of statistics, 10: 872-888.
DOI: https://doi.org/10.4236/ojs.2020.105051   Google Scholar

MESSERLIN P., 1995, The Impact of Trade and Capital Movements on Labour: Evidence on the French case, OECD Economic Studies, (24): 89-124.
  Google Scholar

MOGOE S., MONGALE I., 2014, The Impact of International Trade on Economic Growth in South Africa: An Econometrics Analysis, Mediterranean Journal of Social Sciences, 5(14): 60, https://www.mcser.org/journal/index.php/mjss/article/view/3130.
DOI: https://doi.org/10.5901/mjss.2014.v5n14p60   Google Scholar

OKENNA N. P., ADESANYA B. M., 2020, International Trade and the Economies of Developing Countries, American International Journal of Multidisciplinary Scientific Research, 6(2): 31-39.
DOI: https://doi.org/10.46281/aijmsr.v6i2.747   Google Scholar

OSABUOHIEN S. E., 2011, Analysis of International Trade Performance in Selected sub-Saharan African Countries: Impact of Institutional Framework, Doctoral dissertation, Covenant University, Ota, Nigeria.
  Google Scholar

OTINGA H. N., 2009, The Impact of International Trade on Economic Growth in Developing Countries (Exports for rapid Economic Growth) a case study of Kenya, Doctoral dissertation, University of Nairobi, Kenya.
  Google Scholar

PACIFIC Y. K. T., RAMADHAN A. A., & GABRIELLA N. M. A., 2017, Does Control of Corruption, Accelerate Economic Growth in Botswana, Global Journal of Human-Social Science Research, 17(6): 41-50.
  Google Scholar

POPOOLA O., ALEGE P.O., GERSHON O., ASALEYE, J. A., 2019, Human Capital Channels and Productivity Growth: Evidence from Nigeria, Economics and Sociology, 12(4): 59-73, https://doi.org/10.14254/2071-789X.2019/12-4/3.
DOI: https://doi.org/10.14254/2071-789X.2019/12-4/3   Google Scholar

RAHMAN M. M., SHAHBAZ M., FAROOQ A., 2015, Financial Development, International Trade, and Economic Growth in Australia: New Evidence from Multivariate Framework Analysis, Journal of Asia-Pacific Business, 16(1): 21-43.
DOI: https://doi.org/10.1080/10599231.2015.997625   Google Scholar

RUTTIENS A., 2013, Mathematics of the Financial Markets: Financial Instruments and Derivatives Modelling, Valuation and Risk Issues, John Wiley & Sons.
DOI: https://doi.org/10.1002/9781118818510   Google Scholar

SIDDIQUI K., 2018, David Ricardo’s Comparative Advantage and Developing Countries: Myth and Reality, International Critical Thought, 8(3): 426-452.
DOI: https://doi.org/10.1080/21598282.2018.1506264   Google Scholar

SOI N., KOSKEI I., BUIGUT K., KIBET J., 2013, Effect of International Trade on Economic Growth in Kenya, European Journal of Business and Management, 5(10): 131-137.
  Google Scholar

TARHAN S., 2008, Public Investment and Corruption in an Endogenous Growth Model, MPRA Paper, 34204
  Google Scholar

Download


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

Statistics

Abstract views: 83
PDF downloads: 40