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research article

Effects of urbanization and international trade on economic growth, productivity, and employment: Case of selected countries in Africa

Celik, Ali
•
Bajja, Salwa
•
Radoine, Hassan
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July 15, 2024
Heliyon

The rapid urbanization taking place in Africa is resulting in the emergence of large urban agglomerations. Despite the potential and typical economic benefits associated with the emergence of such agglomerations elsewhere, not much can be said of Africa's urbanization. With urbanization projections pointing to a continued increase, there is a need to understand the urbanization and economic dynamics relationship in order to exploit the full potential of this wave. Using a panel data set of urbanization rate, trade, economic growth, productivity and employment in six African countries for the period 1991–2019, we explore this relationship by adopting the cross-sectional augmented autoregressive distributed lag (CS-ARDL) approach using data from six African countries. The findings show that there is a significant relationship between urbanization, international trade, economic growth, productivity, and employment. they also show a causal relationship between the variables studied. In addition, the findings of this study reveal that international trade contributes, significantly, to improving the productivity in long run and the economic growth and employment increase the productivity in short run and employment in the selected African countries. This research study, therefore, contributes to the critical argument that African urbanization and international trade have significant economic potential and therefore need to be encouraged and managed effectively. This provides evidence for planners and policy-makers to back policy geared toward sustainable urbanization and diversified international trade that will contribute to the structural transformation of African countries.

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Type
research article
DOI
10.1016/j.heliyon.2024.e33539
Scopus ID

2-s2.0-85196964579

Author(s)
Celik, Ali

İstanbul Gelişim Üniversitesi

Bajja, Salwa

Mohammed VI Polytechnic University

Radoine, Hassan

Mohammed VI Polytechnic University

Chenal, Jerome  

École Polytechnique Fédérale de Lausanne

Bouyghrissi, Soufiane

Université Ibn Tofail

Date Issued

2024-07-15

Published in
Heliyon
Volume

10

Issue

13

Article Number

e33539

Subjects

CS-ARDL

•

Economic growth

•

Employment

•

International trade

•

Productivity

•

Urbanization

Editorial or Peer reviewed

REVIEWED

Written at

EPFL

EPFL units
CEAT  
FunderFunding(s)Grant NumberGrant URL

UM6P

EPFL

AS22

Available on Infoscience
January 24, 2025
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/243310
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