Diagnóstico do Crescimento da Economia Cabo-verdiana

Growth Diagnostic of Cape Verdean Economy

João Brito

MPRA Paper from University Library of Munich, Germany

Abstract: This article uses the HRV model proposed by Hausmann, Rodrik and Velasco (2005) to conduct a growth diagnosis of Cape Verde's economy. The real per capita GDP in Cape Verde rose from US$ 806 in 1970 to US$ 2.830 in 2011, representing an average annual rate of growth of 3.3%. The service sector is the main driver of the economy in Cape Verde. The Cape Verdean economy is heavily dependent on foreign capital and, despite considerable economic growth, the unemployment rate remains high and public debt is high. The main factors identified as a barrier to investment/growth in Cape Verde were: poor financial intermediation, poor infrastructure, high costs on flights across islands and strong deviation between market needs and the areas of human capital formation. Government policies should be aimed at overcoming these constraints.

Keywords: Diagnosis of Growth; Model HRV; Small African countries; Cape Verde. (search for similar items in EconPapers)
JEL-codes: O40 O55 (search for similar items in EconPapers)
Date: 2014-01
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