Abstract

The relationship between trade openness and economic growth has been extensively investigated yielding to mixed and inconclusive results. This might be attributed to the omission of the role of capital stock and labor in the trade-growth nexus. This paper examines the impact of trade openness on economic growth for Cote d’Ivoire over the period 1965–2014 in a multivariate framework including capital stock, labor and trade openness as regressors. It uses the Autoregressive Distributed Lag bounds test to cointegration and the Toda and Yamamoto Granger causality tests. The results show that trade openness has positive effects on economic growth both in the short and long run. Furthermore, they reveal a positive and strong complementary relationship between trade openness and capital formation in promoting economic growth.

Details

Title
The impact of trade openness on economic growth: The case of Cote d’Ivoire
Author
Keho, Yaya 1 

1  Department of Applied Economics, Ecole Nationale Supérieure de Statistique et d’Economie Appliquée (ENSEA), 08 BP 03 Abidjan 08, Abidjan, Côte d’Ivoire 
Publication year
2017
Publication date
Dec 2017
Publisher
Taylor & Francis Ltd.
e-ISSN
23322039
Source type
Scholarly Journal
Language of publication
English
DOI
https://doi.org/10.1080/23322039.2017.1332820
ProQuest document ID
2008016002
Copyright
© 2017 The Author(s). This open access article is distributed under a Creative Commons Attribution (CC-BY) 4.0 license. This work is licensed under the Creative Commons Attribution License http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.