Economic openness and income growth in Africa : A study on the impact of economic openness on income growth in African countries in the period from 2010 to 2020

Abstract: Purpose: The objective of this investigation is to analyze the correlation between economic openness and income growth in African nations, elucidating the potential impact of liberalized economic measures on the economic development and prosperity of countries across the continent. Design/Methodology/Approach: The research employs a quantitative methodology, utilizing panel data spanning eleven years, to scrutinize the correlation between economic openness and income growth in Africa. By harnessing datasets from the World Bank and the United Nations, the study directs its attention towards indicators such as GDP growth and foreign direct investment (FDI) to evaluate the repercussions of economic policies on the development of the African continent. Findings: The research findings unveiled a favourable association between economic liberalization and the advancement in GDP per capita within the African continent. Nevertheless, the intensity of this connection exhibited discrepancies amongst nations. The calibre of governance and the stability of the political system bolstered the advantages of liberalization. Manifested disparities in the distribution of income underlined the necessity for customized policy interventions in the given region. Conclusion: The research emphasizes the intricate connection between economic openness and the increase in income within Africa, exposing its inconsistency among different countries. Although openness generally enhances income growth, the interaction of governance, demographics, and various other factors introduces intricacies. Customized strategies that tackle regional difficulties are crucial for fully utilizing the economic openness potential in Africa. Originality/Value: The originality of the study resides in its thorough examination of the intricate correlation between economic openness and the expansion of income, particularly within the African milieu. Through the amalgamation of various economic parameters and contextual elements, this investigation provides fresh perspectives that possess substantial importance for policymakers, academics, and individuals involved in navigating Africa's landscape of development.