Foreign Trade, Economic Growth and Well-Being in Benin

The 80s were a period of great economic instability for Benin. Gross domestic product was falling, public finances were in chronic deficit and competitiveness was waning.The country entered structural adjustment in 1989 to correct both internal and external imbalances and boost growth. Since then, the national economy has returned to growth. The 1994 devaluation of the CFA franc was also intended to boost competitiveness. This study therefore sets out to examine "the effects of foreign trade on growth and well-being in Benin from 1978 to 2003".It shows that foreign trade makes a positive contribution to growth and to improving living conditions. It is therefore important to improve the performance of foreign trade in order to optimize economic and social development.