Growth in Sub-Saharan Africa

Dhaneshwar Ghura and Michael Hadjimichael

No 1995/136, IMF Working Papers from International Monetary Fund

Abstract: The paper investigates empirically the determinants of economic growth for a large sample of sub-Saharan African countries during 1981-92. The results indicate that (i) an increase in private investment has a relatively large positive impact on per capita growth; (ii) growth is stimulated by public policies that lower the budget deficit in relation to GDP (without reducing government investment), reduce the rate of inflation, maintain external competitiveness, promote structural reforms, encourage human capital development, and slow population growth; and (iii) convergence of per capita income occurs after controlling for human capital development and public policies.

Keywords: WP; budget deficit; private sector; terms of trade; CFA franc; rate of inflation; production function; government budget deficit; comparable indicator; terms of trade loss; investment decision; private sector development; government involvement; per capita income; private sector saving; Human capital; Private investment; Real effective exchange rates; Public investment spending; Population growth; Sub-Saharan Africa (search for similar items in EconPapers)
Pages: 32
Date: 1995-12-01
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Citations: View citations in EconPapers (115)

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