Drivers of Growth: Evidence from Sub-Saharan African Countries

By Manuk Ghazanchyan, Janet Gale Stotsky

November 22, 2013

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Manuk Ghazanchyan, and Janet Gale Stotsky. Drivers of Growth: Evidence from Sub-Saharan African Countries, (USA: International Monetary Fund, 2013) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This study examines the drivers of growth in Sub-Saharan African countries, using aggregate data, from the past decade. We correlate recent growth experience to key determinants of growth, including private and public investment, government consumption, the exchange regime and real exchange rate, and current account liberalization, using various econometric methodologies, including fixed and random effects models, with cluster-robust standard errors. We find that, depending on the specification, higher private and public investments boost growth. Some evidence is found that government consumption exerts a drag on growth and that more flexible exchange regimes are beneficial to growth. The real exchange rate and liberalization variables are not significant.

Subject: Exchange rate arrangements, Foreign exchange, National accounts, Private investment, Real effective exchange rates, Real exchange rates

Keywords: Exchange rate, Exchange rate arrangements, Exchange rate regime, Exchange rate regimes, Exchange regime classification, Exchange regime variable, Foreign exchange regime, Government consumption, Growth, Private investment, Real effective exchange rates, Real exchange rate, Real exchange rates, Regime, Regime dummy, Sub-Saharan Africa, WP

Publication Details

Pages:

38
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2013/236
Stock No:

WPIEA2013236
ISBN:

9781475516487
ISSN:

1018-5941

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