Exports and economic growth in Togo

Abstract

The pursuit of high and sustained economic growth is one of the major concerns of States, especially those in the process of developing their economic development. Thus, in the pursuit of economic growth, several studies have often been conducted on a number of macroeconomic policies for the determination of sources of growth. The objective of this paper is to evaluate the impact of exports on the growth of the Togolese economy. As a result of the empirical evaluation, the findings show a positive and significant impact of exports on the Togolese economic growth in the short and long run. In the short run, the change in the exports per capita growth rate as well as the public expenditure per capita growth rate has positive and significant coefficients at the 5% threshold. In the long run, the coefficients of the exports per capita growth rate, of the public expenditure per capita growth rate are positive and significant at the 5% also. On the other hand, in order to determine the impact of economic growth on exports, the results show a positive and significant impact of exports on the Togolese economic growth in the short and long run. Thus, in the short run, changes in the GDP per capita growth rate, the capital per capita growth rate, the effect of devaluation and the shared of credit granted to the private sector have positive and significant coefficients at the threshold by 5% and in the long run, the coefficients of the GDP per capita growth rate, the capital per capita growth rate, the effect of devaluation are positive and significant.