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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/3214

Advisors: Professor Teshome Mulat
Keywords: economics
Copyright: Jun-2011
Date Added: 26-Jun-2012
Publisher: AAU
Abstract: Participation in the existed global economic integration is an inevitable process because it brings additional positive force for the acceleration of economic growth, and ensuring sustainable development, particularly for resource-scarce developing countries like Sub- Saharan Africa., But there will be a need to regulate the level and value of the integration to maximize the benefits and reduce the costs associated with it. The debate about economic development has taken on a new turn since recent years and start thinking beyond per capita gross national product as the measure of a country’s development performance, instead the human development index challenged purely economic measures of national achievement and helped lay the conceptual foundation for the UN's MDGs, calling for consistent global tracking of progress in health, education and overall living standards. To this effect, using a panel data on 39 Sub-Saharan African countries from 1990 to 2009, this study explores the potential contribution of economic globalization for the achievement of human development in SSA. The study uses HDI as a dependent variable and the inflow of investment, GDP Per Capita and trade openness as independent variables. To test the sensitivity of the results, I employ the dynamic panel data method based on System GMM to verify findings. The estimation result suggests that both greater GDP Per Capita and the inflow of foreign investment are positively and significantly contribute to the growth of human development index and then to the progress of those human development components of MDGs. But, the study also confirms outward trade policy has no a direct impact in country’s effort to improve the welfare development of their nation in the region. Moreover, the study recommends SSA countries should focus on domestic and foreign investment policies that encourage job creation, skill and technology transfers, strengthen the quality and accessibility of both health and education sectors.
Description: A Project Submitted to the School of Economics of AddisAbaba University in Partial Fulfillment of the Requirement for the Degree of Master of Art in Economics (Applied Trade Policy Analysis)
URI: http://hdl.handle.net/123456789/3214
Appears in:Thesis - Economics

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