Does the G20 compact with Africa foster economic growth: Evidence from synthetic differences

Vincent Fleuriet and Paul Vertier

Economics Letters, 2024, vol. 236, issue C

Abstract: The G20 Compact with Africa (CwA) is a platform initiated in 2017 by the German Presidency of the G20. It aims at fostering economic activity through higher investment, for countries implementing a package of reforms relating to macroeconomic framework, financial sector and business environment. In this paper, we test whether this initiative managed to foster economic activity between 2017 and 2021 in the 12 African countries that entered the CwA over this period. We show that the CwA is likely to have induced an increase of 5pp in the growth rate of GDP per capita on average for the period, driven by an increase in exports, public consumption and FDI inflows. These estimates are broadly robust to placebo tests.

Keywords: Investment; Growth; Africa (search for similar items in EconPapers)
JEL-codes: F21 F43 N17 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:236:y:2024:i:c:s0165176524000533

DOI: 10.1016/j.econlet.2024.111570

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