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Financial instability, trade openness and energy prices on leading african countries sustainable growth

Ahmad, A. U. and Loganathan, N. and Ismail, S. and Streimikiene, D. and Mardani, A. and Golam Hassan, A. A. (2018) Financial instability, trade openness and energy prices on leading african countries sustainable growth. Economic Computation and Economic Cybernetics Studies and Research, 52 (1). pp. 127-142. ISSN 0424-267X


Official URL: http://dx.doi.org/10.24818/18423264/


This study aimed to examine the effect of financial instability, energy prices and trade openness on economic growth for leading African countries (Egypt, Kenya, Morocco, Nigeria and South Africa). We employed the second-generation cointegration test and the Dumitrescu and Hurlin (DH) heterogeneous panel Granger causality test over the period from 1970 to 2016. The result of cointegration analysis revealed that, there is the existence of a cointegration relationship between the financial instability, oil prices, and trade openness on economic growth sustainability for leading African countries. While, the causality test has revealed a unidirectional causal relationship, which running from financial instability to real economic growth, oil price to real economic growth; and a bidirectional causality running between trade openness and economic growth. The empirical results also showed that, the intervention by leading African country's policymakers could create rigidity or financial repression policies rather than a more stable financial system which could achieve by financial rules and regulations being designed to widen the space for the growth and stability of oriented macroeconomic policies.

Item Type:Article
Uncontrolled Keywords:Energy prices, Financial instability, Growth, Trade openness
Subjects:H Social Sciences > HF Commerce
Divisions:International Business School
ID Code:79914
Deposited By: Narimah Nawil
Deposited On:28 Jan 2019 07:01
Last Modified:28 Jan 2019 07:01

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