Trade openness, telecommunication infrastructure, institutions and economic growth nexus: The case of landlocked African countries

Abstract

This research analyses the effects of openness, telecommunications, and institutional nexus on economic growth in African countries using a panel model with data from 16 landlocked countries from 1996 to 2021 and employing the pooled mean group estimation technique that mitigates bias from country heterogeneity and discerning short-term and long-term equilibrium dynamics and two-step system-generalized method of moments (GMM) estimation for robustness check. The empirical findings indicate that openness exerts a significantly positive effect on economic growth in the models. This supports the neoclassical model, suggesting that being landlocked should not impede economic growth, but rather, growth should depend on opportunities available to each country. However, institutions and telecommunications show a mixed correlation with economic growth. These findings can guide landlocked developing countries in enhancing their exports and fostering skill acquisition to attract advanced technology. In conclusion, policymakers should improve macroeconomic policies, telecommunications infrastructure, and institutional structure to strengthen the sustainability of economic growth in African landlocked countries.