Explaining Growth in African Countries – What Matters?

José Augusto Lopes Da Veiga (), Alexandra Lopes (), Tiago Sequeira and Marcelo Santos
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José Augusto Lopes Da Veiga: Universidade do Mindelo, Management and Economics Department, Mindelo, Cabo Verde, Portugal

Acta Oeconomica, 2019, vol. 69, issue 3, 467-484

Abstract: In this paper we analyse the role of the traditional determinants of economic growth in the African countries in the period between 1950 and 2012. Due to the specificity and the single nature of each one of these countries, methods that take into account observed and unobserved heterogeneity are used. Results highlight the relevance of the growth rate of the capital stock to growth in the short-run, which is significant in all regressions. The growth rate of the government to GDP ratio is also important in all but one of the regressions in which it appears, and its growth is harmful for the growth of GDP per capita in the short-run. The variables related to public debt do not present any relationship with economic growth. Human capital has a positive relationship with economic growth in regressions that do not include public debt. The growth rate of real GDP per capita also depends (negatively) on its past value, i.e., the lower the real GDP per capita the higher will be its growth rate.

Keywords: economic growth; African countries; investment and capital stock; human capital; fiscal variables; observed and non-observed heterogeneity (search for similar items in EconPapers)
JEL-codes: C23 C52 E62 H60 O11 O47 (search for similar items in EconPapers)
Date: 2019
Note: Alexandra Ferreira-Lopes and Tiago Neves Sequeira would like to thank the Portuguese National Science Foundation (FCT) and FEDER/COMPETE for funding, through projects UID/GES/00315/2013 and UID/ECO/04007/2013 (POCI-01-0145-FEDER-007659). The authors would also like to thank two anonymous referees for very useful suggestions. The usual disclaimer applies.
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