Drivers of Growth: Evidence from Sub-Saharan African Countries
IMF Working Papers, November 22, 2013
Source details
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Bibliographic details
- Authors: Manuk Ghazanchyan, Janet Gale Stotsky
- Published: November 22, 2013
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475516487.001
Overview
- Study examines drivers of growth in Sub-Saharan African countries using aggregate data from the past decade.
- Correlates recent growth experience to key determinants: private and public investment, government consumption, the exchange regime and real exchange rate, and current account liberalization.
- Uses various econometric methodologies, including fixed and random effects models, with cluster-robust standard errors.
Methodology
- Econometric approaches: fixed effects models, random effects models.
- Standard errors: cluster-robust standard errors.
- Key variables analyzed:
- Private investment
- Public investment
- Government consumption
- Exchange regime (exchange regime variable / regime dummy)
- Real exchange rate / Real effective exchange rates
- Current account liberalization
Key Findings
- Depending on the specification, higher private and public investments boost growth.
- Some evidence that government consumption exerts a drag on growth.
- More flexible exchange regimes are beneficial to growth.
- The real exchange rate and liberalization variables are not significant.
Subjects and Keywords
- 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