EconPapers    
Economics at your fingertips  
 

AN EMPIRICAL TEST OF EXOGENOUS GROWTH MODELS: EVIDENCE FROM THREE SOUTHERN AFRICAN COUNTRIES

Themba Chirwa () and Nicholas Odhiambo ()

Economic Annals, 2019, vol. 64, issue 220, 7 - 38

Abstract: This paper aims to empiri-cally investigate the relevance of exogenous growth models to explaining economic growth in three Southern African countries, using the ARDL bounds-testing approach. In addition, the relevance of the conver-gence hypothesis in these study countries is tested using an extended exogenous growth model. The study results reveal that the pre-dictions of the Solow and augmented Solow growth models are consistent in the three study countries, and that the convergence hypothesis holds. However, when addition-al factors are taken into account in exoge-nous growth models, the response of income per capita due to changes in investment and human capital development is slow in economies with low income per capita, such as Malawi and Zambia, compared to South Africa, which is ranked as an economy with a high income per capita. This study has im-portant policy implications in these study countries. These implications include the need for policymakers to ensure that mac-roeconomic stability is encouraged by re-ducing government consumption, inflation, and population growth; and by promoting trade in order to allow for the diffusion of technologies from abroad.

Keywords: Exogenous Growth Mod-els; Autoregressive Distributed Lag Model; Economic Growth; Malawi; Zambia; South Africa (search for similar items in EconPapers)
JEL-codes: F43 N17 O47 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.ekof.bg.ac.rs/wp-content/uploads/2014/04/5531.pdf (application/pdf)

Related works:
Working Paper: An empirical test of the exogenous growth models: Evidence from three Southern African countries (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:beo:journl:v:64:y:2019:i:220:p:7-38

Ordering information: This journal article can be ordered from
http://ea.ekof.bg.ac.rs/

Access Statistics for this article

Economic Annals is currently edited by Will Bartlett

More articles in Economic Annals from Faculty of Economics, University of Belgrade Contact information at EDIRC.
Bibliographic data for series maintained by Goran Petrić ().

 
Page updated 2021-04-11
Handle: RePEc:beo:journl:v:64:y:2019:i:220:p:7-38