When it comes to openness to trade-economic growth nexus, our findings suggest that openness to trade is also
growth-neutral, in general. In two of the 4 cases in which we found a significant causality from openness to growth, we found a negative coefficient. We therefore conclude that openness to trade might have a growth-depressing
impact in some African LDCs, as suggested by Vlastou (2010). In our study of the causality relations between
development aid and openness to trade, we observed that in all the cases in which there is a significant causality
relation, the coefficient was negative. This finding suggests that development aid has a negative impact on
international trade, probably because of the reversal of the terms of trade to the disadvantage of LDCs. The famous
Dutch Disease , therefore, seems to be a potential reason for why development aid does not help LDCs at all in
sustaining economic growth.
When it comes to openness to trade-economic growth nexus, our findings suggest that openness to trade is alsogrowth-neutral, in general. In two of the 4 cases in which we found a significant causality from openness to growth, we found a negative coefficient. We therefore conclude that openness to trade might have a growth-depressingimpact in some African LDCs, as suggested by Vlastou (2010). In our study of the causality relations betweendevelopment aid and openness to trade, we observed that in all the cases in which there is a significant causalityrelation, the coefficient was negative. This finding suggests that development aid has a negative impact oninternational trade, probably because of the reversal of the terms of trade to the disadvantage of LDCs. The famousDutch Disease , therefore, seems to be a potential reason for why development aid does not help LDCs at all insustaining economic growth.
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