Growth and Convergence in WAEMU Countries

October 1, 2004

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Format: Chicago

Abdoul A Wane. Growth and Convergence in WAEMU Countries, (USA: International Monetary Fund, 2004) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper investigates convergence and dynamic effects of human and physical capital on growth, in WAEMU countries. Using recently developed models for panel data and a growth accounting model, the study finds that growth is largely explained by changes in literacy rates and factor accumulation, but not by growth of total factor productivity (TFP). Nevertheless, the panel estimation identifies aid, government spending, credit to the private sector, and openness as positive determinants of TFP growth, and government deficits as a negative determinant. The study also finds that per capita income in lower-income WAEMU countries converge to per capita income in higher-income ones when economic policies are similar. These results suggest opportunities for policymakers to enhance growth and convergence.

Subject: Growth accounting, Human capital, Labor force, Personal income, Total factor productivity

Keywords: Estimation method, TFP growth, Total factor productivity growth, WAEMU country, WAEMU economy, WAEMU zone, WP

Publication Details

Pages:

35
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2004/198
Stock No:

WPIEA1982004
ISBN:

9781451860092
ISSN:

1018-5941

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