GLOBAL

                                                                                                                                                                                                                                             DEVELOPMENT STUDIES

                                                                            Copyright © 2006 International Development Options

                                                                                               All Rights Reserved

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Volume Four                                                                   Winter 2005-Spring 2006                                                           Numbers 1-2.

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    DOES GLOBALIZATION AFFECT ECONOMIC GROWTH IN AFRICA?                                                                                

 

   John C. Anyanwu*

   Chief Research Economist and Acting Division Manager

   Research Division, Development Research Department

   African Development Bank

   Tunis - Tunisia

   Email: J.ANYANWU@AFDB.ORG

   Published online: February 10, 2017                                                                 

 

 

   ABSTRACT

 

Globalization - the complex process of economic, political, social, and cultural integration which takes place as capital, trade, goods, persons, ideas, images, values, environmental toxins and even micro-organisms move across state boundaries – presents both opportunities and challenges to African countries. Using panel data containing an index of globalization covering its three main dimensions: economic integration, social integration, and political integration, both also disaggregated for 33 African countries in 1970-2000, this article analyzes the effects of globalization on economic growth in Africa. The results show that the overall index of globalization has no effect on African economic growth. Among the three dimensions, it is social integration that is positively and significantly related with growth. However, further disaggregation shows that a component of economic integration - actual economic flows (trade, foreign direct investment, and portfolio investment, as a percentage of GDP) promote economic growth in Africa. Also, a component of social integration – personal contacts – is positively and significantly related to African economic growth. Political integration has no effect on growth. The article then identifies the main obstacles to the integration of African countries into the world economy and suggests some policy implications.

 

*The views expressed in this article are those of the author and they do not represent the views of the African Development Bank Group.

 

 

IDO        ISSN: 1093-8281                 Copyright © 2017 International Development Options

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