Search results

Taking global economic integration into consideration, this study investigates the effects of the imposition of the tariff. For every tariff increase, a percentage of the trade volume is reduced. This means, there is a tradeoff between globalization and restricted trade. This chapter presents empirical evidence from the European Union and the Sub-Saharan Africa region using annual times series for the period, 1980–2019. Result indicates that with coefficient of 4.31 percent, the tradeoff in European Union is higher than Sub-Saharan Africa region with coefficient of 2.66 percent. Implied is that developing countries are more likely to suffer more from the negative effect of globalization due to trade restrictions than the developed countries of the world. This is an indication that whether in developed or developing countries, a tradeoff exists between globalization and restricted trade. Hence, the imposition of tariffs and counter-tariffs is capable of shutting down globalization.

This study is motivated by the fact that even though many African countries have witnessed rapid growth, they have also experienced high volatility in the form of severe financial crises, especially in the last two decades. These developments naturally lead to the issue of whether, in a more integrated global economy, the relationship between growth and output volatility has changed. The phenomena have also raised questions on whether the growth–output volatility relationship can be linked to the growing pains seemingly associated with rising trade and financial integration. This chapter attempts to provide answer to these questions by providing insights on how trade and financial integration affect the relationship between growth and output volatility using data from selected Africa countries. The study explores in detail the relationship between growth and the volatility of output components (consumption and investment). Our main result is that there is a positive growth and output volatility impact of trade openness and integration with the international financial market. The relationship between growth and financial integration and investment volatility is stronger in the long run than in the short run, while the consumption volatility impact of trade openness is higher in the long run than in the short run, suggesting that countries that are more open to trade appear to face less severe trade-off between growth and volatility.

This chapter examines the relationship between the gender gap in labor force participation, intensive growth and economic welfare in Sub-Saharan African (SSA) from 1981 to 2020 under the framework of the classical production function. The generalized method of moment (GMM) technique was employed in analyzing the data. The empirical result showed a negative and significant effect of the gender gap in labor force participation on intensive growth. It was also found that the gender gap in labor force participation had a negative and insignificant effect on economic welfare in SSA. Other findings showed that male labor force participation had a positive and insignificant effect on both intensive growth and economic welfare, while female labor force participation had a negative and significant effect on intensive growth and a negative and insignificant effect on economic welfare. Trade openness had a positive and significant effect on both intensive growth and economic welfare. Based on the findings, narrowing the gender gap in labor force participation has to be given more considerable attention in the SSA region.