Original Research

Markets, trade and the role of institutions in African development

T Roe
South African Journal of Economic and Management Sciences | Vol 7, No 4 | a1301 | DOI: https://doi.org/10.4102/sajems.v7i4.1301 | © 2004 T Roe | This work is licensed under CC Attribution 4.0
Submitted: 14 January 2004 | Published: 30 November 2004

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T Roe, University of Minnesota, United States

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This paper focuses on the interdependence between international trade and institutional reform and suggests that the trade barriers erected by advanced countries on the agricultural exports of poor countries, in particular sub-Saharan agriculture serve as an impediment to economic growth and development.  Drawing upon recent literature, the suggestion is that trade barriers inhibit institutional reform that is a major factor affecting economic growth. An empirical analysis of trade reform and economic growth shows that sub-Saharan economies can reciprocate potential gains from increased trade, which are larger when an integration with world markets induces institutional reform.


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