Trade Openness, Institutions, and Inclusive Growth in Sub-Saharan Africa

This study assesses the moderating role of institutions in the trade openness and inclusive growth nexus in Sub-Saharan Africa (SSA). Based on the System General Method of Moment estimation technique applied to data from 39 SSA countries from 1996 to 2017, the results offer support for the assertion that institutions strengthen the positive relationship between trade openness and inclusive growth in SSA. Economies in SSA should put in policies to strengthen their institutions to improve the positive link between trade openness and inclusive growth.

Automated summary

This study examines the role of institutions in the relationship between trade openness and inclusive growth in Sub-Saharan Africa. The results show that institutions strengthen the positive link between trade openness and inclusive growth in this region. Policymakers should focus on strengthening institutions to enhance the benefits of trade openness for inclusive growth.