Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279239 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10489
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This study examines the contingency and threshold effects of economic freedom in the economic globalisation (EG) and inclusive green growth (IGG) relationship in Africa. Based on macro data for 22 African countries and the Driscoll-Kraay standard errors with fixed effects instrumental variable regression, the following findings are established. First, Africa's mostly unfree economic setting, conditions EG to reduce IGG. Second, when we disaggregate EG into its financial and trade globalisation components, we find that the IGG-impeding net effect of the latter is rather striking. Third evidence from our threshold analysis suggests that by improving Africa's mostly unfree economic architecture to 60% (moderately free) or 80% (free), the IGG-deteriorating net effects of EG are mitigated (but not nullified). We conclude that unless effort is made to improve Africa's economic architecture level, the envisaged IGG gains of economic globalisation might prove elusive.
Subjects: 
Africa
economic freedom
economic globalisation
inclusive green growth
JEL: 
F14
F40
O56
Q01
Document Type: 
Working Paper
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