Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa

Olumuyiwa Olamade; Oluwasola Oni

doi:doi:10.11648/j.ijefm.20170502.15

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Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa

Olumuyiwa Olamade, Oluwasola Oni

Published in International Journal of Economics, Finance and Management Sciences (Volume 5, Issue 2)

Received: 5 January 2017 Accepted: 19 January 2017 Published: 1 March 2017

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Abstract

This paper examines the long-run relationship between exports and economic growth in Sub-Sahara Africa (SSA) to ascertain, if and how, exports drives economic growth through the productivity channel as opposed to volume contribution of exports to gross domestic product (GDP). We sampled seven SSA countries for the study including six of the most competitive countries in SSA by the Global Competitiveness Report ranking. Applying the panel analysis framework to a data set spanning 1987 to 2014, we found cointegration among non-exports GDP, gross capital formation, human capital, exports and imports. Estimates of the parameters of the cointegrating equation show a significant negative relationship between non-exports GDP and exports, suggesting that exports are productivity reducing in the long-run. However, there is a significant bi-directional causality between exports and economic growth. We conclude that, the dynamic effects of exports on growth through an economy-wide productivity increase are best achieved with the industrial sector as the leading exports sector.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 5, Issue 2)
DOI	10.11648/j.ijefm.20170502.15
Page(s)	113-120
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Exports, Growth, Long-Run, Sub-Sahara Africa, Productivity

References

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Olumuyiwa Olamade, Oluwasola Oni. (2017). Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa. International Journal of Economics, Finance and Management Sciences, 5(2), 113-120. https://doi.org/10.11648/j.ijefm.20170502.15

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ACS Style

Olumuyiwa Olamade; Oluwasola Oni. Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa. Int. J. Econ. Finance Manag. Sci. 2017, 5(2), 113-120. doi: 10.11648/j.ijefm.20170502.15

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AMA Style

Olumuyiwa Olamade, Oluwasola Oni. Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa. Int J Econ Finance Manag Sci. 2017;5(2):113-120. doi: 10.11648/j.ijefm.20170502.15

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@article{10.11648/j.ijefm.20170502.15,
  author = {Olumuyiwa Olamade and Oluwasola Oni},
  title = {Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {5},
  number = {2},
  pages = {113-120},
  doi = {10.11648/j.ijefm.20170502.15},
  url = {https://doi.org/10.11648/j.ijefm.20170502.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20170502.15},
  abstract = {This paper examines the long-run relationship between exports and economic growth in Sub-Sahara Africa (SSA) to ascertain, if and how, exports drives economic growth through the productivity channel as opposed to volume contribution of exports to gross domestic product (GDP). We sampled seven SSA countries for the study including six of the most competitive countries in SSA by the Global Competitiveness Report ranking. Applying the panel analysis framework to a data set spanning 1987 to 2014, we found cointegration among non-exports GDP, gross capital formation, human capital, exports and imports. Estimates of the parameters of the cointegrating equation show a significant negative relationship between non-exports GDP and exports, suggesting that exports are productivity reducing in the long-run. However, there is a significant bi-directional causality between exports and economic growth. We conclude that, the dynamic effects of exports on growth through an economy-wide productivity increase are best achieved with the industrial sector as the leading exports sector.},
 year = {2017}
}

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TY  - JOUR
T1  - Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa
AU  - Olumuyiwa Olamade
AU  - Oluwasola Oni
Y1  - 2017/03/01
PY  - 2017
N1  - https://doi.org/10.11648/j.ijefm.20170502.15
DO  - 10.11648/j.ijefm.20170502.15
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 113
EP  - 120
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20170502.15
AB  - This paper examines the long-run relationship between exports and economic growth in Sub-Sahara Africa (SSA) to ascertain, if and how, exports drives economic growth through the productivity channel as opposed to volume contribution of exports to gross domestic product (GDP). We sampled seven SSA countries for the study including six of the most competitive countries in SSA by the Global Competitiveness Report ranking. Applying the panel analysis framework to a data set spanning 1987 to 2014, we found cointegration among non-exports GDP, gross capital formation, human capital, exports and imports. Estimates of the parameters of the cointegrating equation show a significant negative relationship between non-exports GDP and exports, suggesting that exports are productivity reducing in the long-run. However, there is a significant bi-directional causality between exports and economic growth. We conclude that, the dynamic effects of exports on growth through an economy-wide productivity increase are best achieved with the industrial sector as the leading exports sector.
VL  - 5
IS  - 2
ER  -

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Author Information

Olumuyiwa Olamade

Department of Economics, College of Social and Management Sciences, Caleb University Imota, Lagos, Nigeria
Oluwasola Oni

Department of Economics, College of Social and Management Sciences, Caleb University Imota, Lagos, Nigeria

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Olumuyiwa Olamade, Oluwasola Oni. (2017). Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa. International Journal of Economics, Finance and Management Sciences, 5(2), 113-120. https://doi.org/10.11648/j.ijefm.20170502.15

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ACS Style

Olumuyiwa Olamade; Oluwasola Oni. Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa. Int. J. Econ. Finance Manag. Sci. 2017, 5(2), 113-120. doi: 10.11648/j.ijefm.20170502.15

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AMA Style

Olumuyiwa Olamade, Oluwasola Oni. Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa. Int J Econ Finance Manag Sci. 2017;5(2):113-120. doi: 10.11648/j.ijefm.20170502.15

Copy | Download

@article{10.11648/j.ijefm.20170502.15,
  author = {Olumuyiwa Olamade and Oluwasola Oni},
  title = {Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {5},
  number = {2},
  pages = {113-120},
  doi = {10.11648/j.ijefm.20170502.15},
  url = {https://doi.org/10.11648/j.ijefm.20170502.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20170502.15},
  abstract = {This paper examines the long-run relationship between exports and economic growth in Sub-Sahara Africa (SSA) to ascertain, if and how, exports drives economic growth through the productivity channel as opposed to volume contribution of exports to gross domestic product (GDP). We sampled seven SSA countries for the study including six of the most competitive countries in SSA by the Global Competitiveness Report ranking. Applying the panel analysis framework to a data set spanning 1987 to 2014, we found cointegration among non-exports GDP, gross capital formation, human capital, exports and imports. Estimates of the parameters of the cointegrating equation show a significant negative relationship between non-exports GDP and exports, suggesting that exports are productivity reducing in the long-run. However, there is a significant bi-directional causality between exports and economic growth. We conclude that, the dynamic effects of exports on growth through an economy-wide productivity increase are best achieved with the industrial sector as the leading exports sector.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Are Exports Productivity Enhancing? A Panel Analysis of Sub-Sahara Africa
AU  - Olumuyiwa Olamade
AU  - Oluwasola Oni
Y1  - 2017/03/01
PY  - 2017
N1  - https://doi.org/10.11648/j.ijefm.20170502.15
DO  - 10.11648/j.ijefm.20170502.15
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 113
EP  - 120
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20170502.15
AB  - This paper examines the long-run relationship between exports and economic growth in Sub-Sahara Africa (SSA) to ascertain, if and how, exports drives economic growth through the productivity channel as opposed to volume contribution of exports to gross domestic product (GDP). We sampled seven SSA countries for the study including six of the most competitive countries in SSA by the Global Competitiveness Report ranking. Applying the panel analysis framework to a data set spanning 1987 to 2014, we found cointegration among non-exports GDP, gross capital formation, human capital, exports and imports. Estimates of the parameters of the cointegrating equation show a significant negative relationship between non-exports GDP and exports, suggesting that exports are productivity reducing in the long-run. However, there is a significant bi-directional causality between exports and economic growth. We conclude that, the dynamic effects of exports on growth through an economy-wide productivity increase are best achieved with the industrial sector as the leading exports sector.
VL  - 5
IS  - 2
ER  -

Copy | Download