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| Trade Openness and Its Effect on Selected Macroeconomic Variables of Senegal from 1986 To 2018 |
Amakor, Ifeoma Chinelo (PhD), and Onwuzuligbo, Leonard Tabugbo (PhD)
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Abstract:
This study evaluated the effect of Trade openness on Senegalese National Savings, Gross Fixed Capital Formations and Gross Domestic Product from 1986 to 2019, using time series data. Doornik-Hansen Test of Normality was used to test for normal distribution among the variables and the stationarity test was carried out using ADF Test and PP Test. The models were subjected to residual and stability tests of LM, heteroskedasticity serial correlation and Ramsey Reset Specification test. The long run and short run relationship among the selected variables were carried out using bond test and ARDL respectively, while the formulated hypotheses were tested using Pairwise Granger Causality Test. The result revealed that Trade openness has no effect on the variables under study. That means that export capacity of Senegal did not increase her economic performance. For the country of Senegal to benefit from trade liberalization, there is need for reform in her trade and fiscal policy
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