An Empirical Analysis Of The Relationship Between Foreign Trade And Economic Growth In Central Africa
This study investigated the relationship between foreign trade and economic growth in Central Africa over a period of 1991 -2011. The study utilized secondary sources of data obtained from World Bank and African Development Bank. Panel Regression Techniques was applied which incorporated both Fixed and Random Effects in analyzing the data set. The total of 8 countries that cut across the Central Africa region were selected. The study reports that exports has a positive significant influence on economic growth in Central Africa while import is negative and statistical significant. Foreign exchange rate did not significantly influenced economic growth during the period under study. On the basis of the finding, the study concludes that exports exert influence on Central Africa economic growth. The study therefore recommends that governments of Central African countries should boost export through establishments of relevant agency, is also recommended that manufacturing industries should improve so that their output would be competitive in international market and exchange rate deregulation should be guided in order to achieve stable and consistent exchange rate.
Keywords- Foreign Trade, Economic Growth