Globalisation and economic growth in Africa: New evidence from the past two decades

Background: In the last two decades, world experienced overlapping global shocks – that is, 2008–2009 financial crisis and COVID-19 lockdowns with severe social economic consequences on African economies have, once again, brought to fore intricate role globalisation plays in growth because of grave risks often accompany it.Aim: We consider three research questions about globalisation: (i) does heighten growth? (ii) is there a statistically significant threshold level above which affects differently than at lower levels? (iii) what factors moderate globalisation-economic nexus?Setting: A panel 47 selected countries from Africa 2001 2018 under scrutiny.Method: To begin, it applies an five-year moving average (MA) smoothen data. addition, we employ revised index two-step systems generalised method moment (GMM) its empirical strategy.Results: find largely insignificant relationship between growth. attribute these results Africa’s infinitesimal share less 5% foreign direct investment (FDI) trade, acute infrastructure deficit lack relevant skills lead productivity losses weak performance within international business ecosystem. also find, among others, more effective gross capital formation, higher population urban rates.Conclusion: For maximise potential globalisation, sound policies should be put place promote FDI, domestic formation urbanisation. suggest future studies investigate long-run equilibrium