Unlocking African economic growth potentials through the lenses of trade openness and financial development shocks
The African continent is advancing toward the ambitious objectives of Vision 2063, which outlines a sustainable and prosperous future, but progress depends on targeted macroeconomic policies, particularly in trade. However, inadequate financing remains a key obstacle to realizing the full benefits o...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2025.2457480 |
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| author | Abdussalam Aljadani Ridwan Lanre Ibrahim Lukman Raimi Usama Al-Mulali Mamdouh Abdulaziz Saleh Al-Faryan |
| author_facet | Abdussalam Aljadani Ridwan Lanre Ibrahim Lukman Raimi Usama Al-Mulali Mamdouh Abdulaziz Saleh Al-Faryan |
| author_sort | Abdussalam Aljadani |
| collection | DOAJ |
| description | The African continent is advancing toward the ambitious objectives of Vision 2063, which outlines a sustainable and prosperous future, but progress depends on targeted macroeconomic policies, particularly in trade. However, inadequate financing remains a key obstacle to realizing the full benefits of trade. Our research examines the impact of trade openness and the asymmetric effects of financial development on economic growth (EG) in Africa's leading financially developed nations—South Africa, Egypt, Morocco, Nigeria, and Algeria—over the period 1995–2020. Using robust methodologies such as the Pooled Mean Group (PMG) and Quantile Regression (QR), we find that trade openness is a critical driver of EG. Positive shocks in financial development enhance growth, while negative shocks hinder it. Additionally, digitalization and market size foster EG, whereas underdeveloped transport services constrain it. These findings highlight the need for policies that promote trade openness, mitigate financial instability, leverage digitalization, expand market size, and improve transport infrastructure to advance the goals of Vision 2063. |
| format | Article |
| id | doaj-art-249f348ed008416d80aa7ec1573a3db6 |
| institution | Kabale University |
| issn | 2332-2039 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-249f348ed008416d80aa7ec1573a3db62025-01-31T05:17:01ZengTaylor & Francis GroupCogent Economics & Finance2332-20392025-12-0113110.1080/23322039.2025.2457480Unlocking African economic growth potentials through the lenses of trade openness and financial development shocksAbdussalam Aljadani0Ridwan Lanre Ibrahim1Lukman Raimi2Usama Al-Mulali3Mamdouh Abdulaziz Saleh Al-Faryan4Department of Management, College of Business Administarion in Yanbu, Taibah University, Al-Madinah Al-Munawarah, Saudi ArabiaDepartment of Economics, University of Lagos, Lagos State, NigeriaDepartment of Business (Entrepreneurship), Universiti Brunei Darussalam, Bandar Seri Begawan,BruneiFaculty of Business, Sohar University, Sohar, OmanBoard Member and Head of the Scientific Committee at The Saudi Economic Association, Riyadh, Saudi ArabiaThe African continent is advancing toward the ambitious objectives of Vision 2063, which outlines a sustainable and prosperous future, but progress depends on targeted macroeconomic policies, particularly in trade. However, inadequate financing remains a key obstacle to realizing the full benefits of trade. Our research examines the impact of trade openness and the asymmetric effects of financial development on economic growth (EG) in Africa's leading financially developed nations—South Africa, Egypt, Morocco, Nigeria, and Algeria—over the period 1995–2020. Using robust methodologies such as the Pooled Mean Group (PMG) and Quantile Regression (QR), we find that trade openness is a critical driver of EG. Positive shocks in financial development enhance growth, while negative shocks hinder it. Additionally, digitalization and market size foster EG, whereas underdeveloped transport services constrain it. These findings highlight the need for policies that promote trade openness, mitigate financial instability, leverage digitalization, expand market size, and improve transport infrastructure to advance the goals of Vision 2063.https://www.tandfonline.com/doi/10.1080/23322039.2025.2457480Tradefinancial developmentdigitalizationeconomic growthAfricaEconomics |
| spellingShingle | Abdussalam Aljadani Ridwan Lanre Ibrahim Lukman Raimi Usama Al-Mulali Mamdouh Abdulaziz Saleh Al-Faryan Unlocking African economic growth potentials through the lenses of trade openness and financial development shocks Cogent Economics & Finance Trade financial development digitalization economic growth Africa Economics |
| title | Unlocking African economic growth potentials through the lenses of trade openness and financial development shocks |
| title_full | Unlocking African economic growth potentials through the lenses of trade openness and financial development shocks |
| title_fullStr | Unlocking African economic growth potentials through the lenses of trade openness and financial development shocks |
| title_full_unstemmed | Unlocking African economic growth potentials through the lenses of trade openness and financial development shocks |
| title_short | Unlocking African economic growth potentials through the lenses of trade openness and financial development shocks |
| title_sort | unlocking african economic growth potentials through the lenses of trade openness and financial development shocks |
| topic | Trade financial development digitalization economic growth Africa Economics |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2025.2457480 |
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