Effects of Macroeconomic Stabilityon Growth, Savings, and Investment in Sub-Saharan Africa: An Empirical Investigation

By Dhaneshwar Ghura, E. Murat Ucer, Martin Mühleisen, Michael T. Hadjimichael, Roger Nord

August 1, 1994

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Dhaneshwar Ghura, E. Murat Ucer, Martin Mühleisen, Michael T. Hadjimichael, and Roger Nord. Effects of Macroeconomic Stabilityon Growth, Savings, and Investment in Sub-Saharan Africa: An Empirical Investigation, (USA: International Monetary Fund, 1994) accessed September 18, 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

The analysis of this paper indicates that the unsatisfactory overall economic performance of sub-Saharan African countries during 1986–93 was due to inappropriate policies pursued by a number of countries. The countries that have pursued broadly appropriate adjustment policies have performed much better, achieving positive per capita GDP growth. The analysis is supported with an econometric investigation of the effects of macroeconomic policies, structural reforms, and exogenous factors on economic performance. The results indicate that progress in achieving macroeconomic stability and implementing structural reforms have been conducive to better growth, savings, and private investment.

Subject: Expenditure, Foreign aid, International trade, National accounts, Private investment, Private savings, Public investment spending, Real effective exchange rates, Terms of trade

Keywords: Africa, Budget deficit, CFA franc country, Cost of capital, Debt ratio, Exchange rate, Gross investment, Income effect, Inflation rate, Private investment, Private savings, Private sector, Public investment spending, Southern Africa, Structural adjustment, Sub-Saharan Africa, Terms of trade, WP

Publication Details

Pages:

122
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1994/098
Stock No:

WPIEA0981994
ISBN:

9781451852073
ISSN:

1018-5941

Notes

Study on economic performance of sub-Saharan African countries during 1986-93.

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