Analysis of the effects of non-agricultural exports in Benin

Exports are an essential component of a nation’s foreign trade, as they contribute to the formation of GDP. Thus, many theoretical studies have focused on the relationship between trade and growth. However, few empirical studies have focused on the link between exports and growth, in terms of the type of exports that most influence growth. The aim of this study is to assess the effects of non-agricultural exports on growth and well-being in Benin. The analysis uses time series data covering the period 1978-2008. The investigation uses cointegration estimation to identify the relationship between non-agricultural exports and economic growth, and between each type of non-agricultural export and the two welfare indicators selected, namely per capita household consumption and the Human Development Index. The estimates show that non-agricultural exports exert a positive and significant effect on growth in Benin in both the short and long term.