Economic growth and trade openness : evidence from Zambia
Joint Authors
Source
Issue
Vol. 21, Issue 1 (31 Dec. 2021), pp.15-30, 16 p.
Publisher
Kasdi Merbah University Faculty of Economics Commercial Sciences and Management Sciences
Publication Date
2021-12-31
Country of Publication
Algeria
No. of Pages
16
Main Subjects
Topics
Abstract EN
This paper sought to investigate the causal relationship between economic growth and trade openness using time series data of Zambia for the period 1978 to 2016.
Two additional variables, Foreign Direct Investment (FDI) and physical capital were incorporated to form a multivariate framework.
Autoregressive Distributed Lag (ARDL) bound approach was used to determine the presence of the long run relationship among the variables while the Vector Error Correction Model (VECM) was used to determine the direction of causality among the variables, both in the short run and long run.
The ARDL revealed a significant long run relationship among the variables.
Physical capital was found to have a significant long run effect on economic growth but highly insignificant in the short run.
Bi-directional granger causality was significant between economic growth and trade openness in the short run.
The study also established a unidirectional short run causality flowing from physical capital to trade openness and from FDI to economic growth.
Strong long run causality was found flowing from economic growth, FDI and physical capital to trade openness.
The study further established a weak long run causality flowing from economic growth, trade openness and FDI to physical capital.
American Psychological Association (APA)
Muwau, Ilyas& Ndulo, Manenga. 2021. Economic growth and trade openness : evidence from Zambia. Revue du Chercheur،Vol. 21, no. 1, pp.15-30.
https://search.emarefa.net/detail/BIM-1297009
Modern Language Association (MLA)
Muwau, Ilyas& Ndulo, Manenga. Economic growth and trade openness : evidence from Zambia. Revue du Chercheur Vol. 21, no. 1 (2021), pp.15-30.
https://search.emarefa.net/detail/BIM-1297009
American Medical Association (AMA)
Muwau, Ilyas& Ndulo, Manenga. Economic growth and trade openness : evidence from Zambia. Revue du Chercheur. 2021. Vol. 21, no. 1, pp.15-30.
https://search.emarefa.net/detail/BIM-1297009
Data Type
Journal Articles
Language
English
Notes
Includes appendices : p. 25-28
Record ID
BIM-1297009