Revisiting the Role of Institutional Structures in the Relationship Between Trade Openness and Poverty Reduction in Sub-Saharan Africa

The study investigates the conditioning effect of institutions in the relationship between trade openness and poverty reduction in Sub-Saharan African economies. Employing generalized method of moments, it was revealed that institutions influence the relationship between trade openness and poverty reduction in SSA. Thus, to reduce poverty in the region, SSA economies must first start by opening their economies to international trade. This could be achieved by reducing import and export taxes, focusing more on exporting value-added products and providing relevant training and information for importers and exporters. However, such attempts will be more fruitful in the presence of sound institutions.