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This paper uses an instrumental variables approach to estimate the relationship between trade openness and economic growth in Sub-Saharan Africa. Instrumental variables estimates show that economic growth has a significant negative contemporaneous effect on trade openness, while trade openness has a significant positive effect on economic growth. A 1 percentage point increase in the ratio of trade over GDP is associated with a short-run increase in growth of approximately 0.5% in a given year; the cumulative long-run effect on the level of GDP per capita is larger, reaching about 2%. [ABSTRACT FROM AUTHOR]

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The article focuses on the argument of Dani Rodrik, author at the Institute for Advanced Study, in the article "An African growth miracle?" regarding the economic potential in Sub-Saharan African with almost three percent annual growth rate of per-capita gross domestic product (GDP) since 2000. Topics discussed include various traditional growth engines include institutions, natural resources, and industrialization rates, export diversification, and outmigration from agricultural areas.