Empirical Investigation into the Export-led Growth Hypothesis: Evidence from 10 Leading African Economies

Many developing nations have strengthened their export-led orientation to address external imbalances. However, how developing countries perform is still unknown. This study used panel data from the 10 largest economies in Africa (Algeria, Egypt, Nigeria, South Africa, Angola, Ethiopia, Ghana, Kenya, Morocco, and Tanzania) to examine the validity of the export-led growth hypothesis in the selected economies. The study adopted a methodology framework based on the fixed effect estimation of time series data for the 10 countries from 1990 to 2021. The Hausman test determined the appropriateness of the adopted estimation technique by rejecting the random effect model. Similarly, the LM test of the random effect rejected the use of pooled ordinary least squares. Moreover, the estimate revealed the absence of heteroscedasticity, which further affirms the reliability of the estimated coefficients. Our findings demonstrate that increased exports significantly boosted growth across countries within the period. The article recommends that policymakers across selected countries consider encouraging export expansion plans to increase trade. The study also suggests a policy part of heavy investment in infrastructure and human capital development for export-led policy sustainability. JEL Classification: F43, F14, F10, C23