GLOBALIZATION AND ECONOMIC GROWTH IN AFRICA

Abstract

Using the endogenous growth framework and panel regression techniques, this study investigates the impact of globalization on economic growth in Africa from 1980 to 2017. Two proxies of globalization were utilized in the study, namely trade openness (as a measure of trade globalization) and the Chinn-Ito index (as a measure of financial globalization). A long run relationship was found between growth and the associated variables. Under the period of investigation, trade globalization exerted more significant impact on economic growth in Africa in contrast to financial globalization, suggesting that trade globalization mattered more for economic growth than financial globalization. A well-articulated and coordinated set of economic policies is recommended to encourage investment in fixed capital, human capital and promote trade, with a view to improving economic growth arising from globalization in the continent.