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G-Localization as a Development Model: Economic Implications for Africa

Alege, P. O. and Osabuohien, E. S. C. (2013) G-Localization as a Development Model: Economic Implications for Africa. International Journal of Applied Economics & Econometrics, Bangalore. India, xxi (1). pp. 41-72. ISSN 0971-8281

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Abstract

In this paper, we investigate G-Localization thesis in which we postulate that developing economies can achieve stable economic growth by active participation in the global economy while exploring the virtue of intraregional trade. We employ the augmented Solow growth model to capture the relationship between growth rates of the economy using trade, industrial and technology explanatory variables in a panel of 41 selected African countries. We commence the empirical analysis with a description of Panel Vector Autoregression model. To assess the long-run relationship, we carried out panel unit root tests, panel cointegration and a panel-based vector error correction model estimation. Panel Granger causality test is used to examine the direction of causality in a bivariate manner. The empirical results provide clear support for the need for African countries to look more inward while they participate in global economy: that is they should "G-localize"

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Law, Arts and Social Sciences > School of Education
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 12 Mar 2015 22:16
Last Modified: 12 Mar 2015 22:16
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/3886

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