Institutional quality, openness, and investment in Africa

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Authors

Kandiero, Tonia
Wadhawan, Satish

Journal Title

Journal ISSN

Volume Title

Publisher

Faculty of Economic and Management Sciences, University of Pretoria

Abstract

This study supports the conventional wisdom that openness to trade is good for investment and economic growth. Whether this conclusion leaves space for institutional quality as a complimentary policy to determine the success of trade liberalization in Africa is the objective of this paper. The theoretical model and empirical analysis show how the behavior of government bureaucrats can be used to explain the impact on investment of the interaction between increased openness to trade and the quality of institutions. Empirical work is conducted using panel data observed over three periods: 1985-1990, 1990-1995, and 1995- 2000.

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Keywords

Institutional quality, Openness to trade, Investment, Economic growth, African trade liberalization

Sustainable Development Goals

Citation

Kandiero, T & Wadhawan, S 2003, 'Institutional quality, openness, and investment in Africa', South African Journal of Economic and Management Sciences, vol. 6, no. 2, pp. 346-368. [http://www.journals.co.za/ej/ejour_ecoman.html]