Drivers of Growth: Evidence from Sub-Saharan African Countries
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
This study examines the drivers of growth in Sub-Saharan African countries, using aggregate data, from the past decade. We correlate recent growth experience to key determinants of growth, including private and public investment, government consumption, the exchange regime and real exchange rate, and current account liberalization, using various econometric methodologies, including fixed and random effects models, with cluster-robust standard errors. We find that, depending on the specification, higher private and public investments boost growth. Some evidence is found that government consumption exerts a drag on growth and that more flexible exchange regimes are beneficial to growth. The real exchange rate and liberalization variables are not significant.
Series:
Working Paper No. 2013/236
Subject:
Exchange rate arrangements Foreign exchange National accounts Private investment Real effective exchange rates Real exchange rates
English
Publication Date:
November 22, 2013
ISBN/ISSN:
9781475516487/1018-5941
Stock No:
WPIEA2013236
Pages:
38
Please address any questions about this title to publications@imf.org