The Impact of International Trade on Economic Growth in Sub-Saharan African Countries: A Case Study of Seventeen Countries from (2010 to 2021)

Abstract

This study investigates the impact of international trade on economic growth in seventeen Sub-Saharan African countries, including Nigeria, South Africa, and Ghana, among others. Recognizing the diverse economic landscapes and challenges these countries face, the study employs a quantitative research methodology, utilizing secondary data from reputable sources such as national statistics offices and World Bank databases. A comprehensive empirical analysis is conducted using multiple regression models in STATA software to assess the correlation between international trade and economic growth from 2010 to 2021. The core variables tested include GDP growth, trade as a percentage of GDP, population growth, capital as a percentage of GDP, labor force participation, and economic freedom. The findings revealed that international trade significantly contributes to economic growth, although the degree of impact varies across the countries studied. The research highlights the role of exports in enhancing economic performance and the need for strategic policies that promote export diversification and address import dependencies. The study also underscores the importance of a stable political environment and efficient trade policies to optimize the benefits of trade liberalization. Overall, this thesis provides valuable insights into the complexities of international trade and its potential to drive economic growth in Sub-Saharan Africa. The conclusions drawn are intended to guide policymakers, businesses, and academics in formulating strategies that leverage international trade for sustainable economic development in the region.