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

Abstract

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.