Macroeconomic Determinants of Trade Openness in Mauritania: Empirical Study during the period (1991-2020)

Abstract

This study examines the macroeconomic determinants of trade openness in Mauritania during the period 1991–2020 using the ARDL model. Annual data from the World Bank and the National Office of Statistics are used to analyze the short-run and long-run relationships among the variables. However, much of the empirical literature has focused solely on the relationship between it and economic growth, rather than on its determinants.

The results confirm the existence of a long-run equilibrium relationship between trade openness and its macroeconomic determinants. Foreign direct investment and financial development have positive and significant effects on trade openness, while inflation, market size, and labor force negatively influence it. The error correction mechanism confirms the gradual adjustment toward long-run equilibrium, with diagnostic tests validating the stability and reliability of the model. The study recommends promoting FDI, strengthening financial development, improving infrastructure, and maintaining macroeconomic stability to enhance Mauritania’s trade openness.

Classification JEL: F1 F13 E6 F11  

Paper type:  Empirical Research