Determinants of Non-oil Growth in the CFA-Zone Oil Producing Countries: How do they Differ?

October 1, 2011

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

Non-oil growth in the CFA oil exporting countries has been lackluster despite their great natural resource wealth. In this paper we study the key determinants of non-oil growth and explore to what extent these countries differ from countries with comparable levels of development that do not depend on nonrenewable resources. Using a panel of 38 countries comprising LICs and CFA zone oil exporters, we find that while real exchange rate appreciation negatively impacted growth in all countries over the period 1985-2008, what distinguishes the oil producers of the CFA zone is the failure of public and private investment to spur non-oil growth.

Subject: Commodities, Expenditure, Foreign exchange, National accounts, Oil, Private investment, Public investment and public-private partnerships (PPP), Public investment spending, Real exchange rates

Keywords: economic growth, growth equation, investment project appraisal, investment share, management process, Oil, oil exporter, oil exports, Private investment, public goods, public investment, Public investment and public-private partnerships (PPP), Public investment spending, real exchange rate, Real exchange rates, robustness check, WP

Pages:
20
Volume:
2011
DOI:
https://doi.org/10.5089/9781463921996.001
Issue:
233
Series:
Working Paper No. 2011/233
Stock No:
WPIEA2011233
ISBN:
9781463921996
ISSN:
1018-5941

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