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DOES THE LIBERALIZATION OF INTERNATIONAL TRADE HELP IMPROVE THE ECONOMY OF SUB-SAHARAN AFRICAN STATES, OR HAS IT BEEN THE MAIN CAUSE FOR THE REGION’S ECONOMIC STAGNATION?

INTRODUCTION

The integration into the world economy provided the opportunity for countries to promote economic growth, development as well as poverty reduction. The growth of world trade has averaged six percent per year over the past twenty years, twice as fast as world output. Trade became the main source of growth to some parts of the world for a much longer period. However, there are areas that are still struggling to develop whereby trade was, or is not as much beneficial as it is supposed to be. For some developing countries, international trade became one of the major reasons why their economic growth has been positive, while other countries do not benefit completely from trade liberalization; rather it is argued that trade is the main cause of why these countries are becoming poorer.

Over the last three decades, the Sub-Saharan African has performed badly in relation to other parts of the world. After one decade of moderate growth, during the 70’s, a slowdown in growth rates is placed. Economic, social and health indicators have improved poorly during these years.(IMF FUND) It has been argued that trade has been one of the reasons why the region is failing to undergo a positive economic growth. This can be an understatement. Liberalization of international trade provides developing countries with the opportunity to be part of the international market, which will provide a positive chance for them to develop their economies. Despite trade being the reason for some economic declines in the sub-Saharan Africa, it had a positive impact to the region in the recent years as there was a slight increase in its economy.

The purpose of the paper is to examine the extent in which the liberalization of international trade benefited sub-Saharan Africa in terms of economic growth. This can be...