DEA Working Paper No. 21, December 2006

Does Africa Really Benefit from Trade?


Matthias Busse and José Luis Groizard

 

Abstract 

We empirically analyse the impact of trade on income levels in the sub-Saharan Africa countries. The results indicate that the linkage between both variables is negative for these countries. This outcome may explain the negative sign of the Africa dummy in income (or growth) regressions.

 

Keywords: Trade, Income Levels, Sub-Saharan Africa.

JEL codes: F1, O24, O40.

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