The impact of international trade on economic growth in North Africa : evidence from the PMG-ARDL approach, 2000-2018

Abstract EN

This study investigates the effects of international trade on economic growth in developing countries, with a focus on North African countries.

We employ the mean group estimation technique to evaluate the long-run and short-run relevance of international trade and economic growth over six countries during the period 2000-2018.

In general, the results are largely consistent with the positive impact of international trade on economic growth as found in the literature.

However, empirical evidence indicates that the exchange rate has a positive impact in the long and short terms on economic growth.

On the other hand, exports of goods and services have a positive impact in the short run while imports of goods and services have a negative effect in the long run on economic growth.

The study concludes that foreign trade plays an important role in Africa's economic growth.

Finally, there should be concrete policy efforts to be a major provider of any product globally with the aim of achieving sustainable development economics.