Export Earnings Instability and Economic Growth in Sub-Sahara African Countries

Abstract

The paper investigates the impact of uncertainty generated by export earnings instability on economic growth, A model that links uncertainty to economic performance is developed, and. from the model the condition under which outward-oriented economic policy contributes positively to economic growth was set From panel data analysis, it is inferred that Io benefit from an outward-oriented economic policy, the stable component of export revenue of the region has to grow annually by at least 7.5% If this condition is not satisfied the policy ads adversely on economic performance by inducing resource misallocation.