Mauritius The Drivers of Growth—Can the Past be Extended?
IMF Working Papers, July 23, 2014
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Bibliographic details
- Authors: Katsiaryna Svirydzenka, Martin Petri
- Published: July 23, 2014
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781498392372.001
Overview and main finding
- Mauritius’s economic performance has been called “the Mauritian miracle” and the “success of Africa” (Romer, 1992; Frankel, 2010; Stiglitz, 2011).
- Despite difficult initial conditions that led a Nobel Prize Winner in economics to predict stagnation (Meade, 1961), growth averaged 4½ percent over the past 20 years.
- Using growth accounting to analyze sources of past growth and project potential ranges of growth through 2033, the paper’s baseline suggests future growth rates around 3¼ percent.
- With strong pro-active policies, growth could reach 4-5 percent.
- With policies capable of generating 5 percent growth, Mauritius could reach high-income status in 2021, 4 years earlier than under the baseline.
Quantitative projections and key statistics
- Past average growth: 4½ percent (over the past 20 years).
- Baseline projected future growth: 3¼ percent.
- Upside policy scenario projected growth: 4-5 percent.
- High-income status timing under 5 percent growth: 2021, which is 4 years earlier than under the baseline.
- Projection horizon: through 2033.
Policy recommendations and drivers to reach higher growth
- Improve investment and savings rates.
- Improve the efficiency of social spending and implement public enterprise reforms.
- Invest in education and undertake education reforms.
- Implement labor market reforms.
- Take further measures to reduce bottlenecks and increase productivity.
Methodology and scope
- Framework: growth accounting to analyze sources of past growth and to project potential ranges of growth.
- Subjects covered: Depreciation, Human capital, Labor, Labor force, National accounts, Production, Total factor productivity.
Publication and metadata
- Authors: Katsiaryna Svirydzenka, Martin Petri
- Date: July 23, 2014
- Series: IMF Working Papers
- Working Paper No.: 2014/134
- Issue: 134
- Volume: 2014
- Pages: 41
- DOI: https://doi.org/10.5089/9781498392372.001
- Stock No: WPIEA2014134
- ISBN: 9781498392372
- ISSN: 1018-5941
- Format information noted on the page: Download PDF; More Formats on IMF eLibrary; Order a Print Copy; Create Citation
Keywords (as listed)
- Africa, capital share, constant returns to scale, Depreciation, depreciation rate, factor input, Growth, growth accounting, Human capital, investment rate, Labor force, labor market, Mauritius, Mauritius growth miracle, physical capital, policies Mauritius, production function, statistics Mauritius, Sub-Saharan Africa, Total factor productivity, total factor productivity improvement, WP
Source: IMF Working Paper by Katsiaryna Svirydzenka and Martin Petri, “Mauritius The Drivers of Growth—Can the Past be Extended?”, July 23, 2014; Working Paper No. 2014/134.