Sub-Saharan Africa's Recent Growth Spurt : An Analysis of the Sources of Growth
Since the mid-1990s, Sub-Saharan Africa has experienced unprecedented levels of high economic growth. A key question follows: What accounts for the turnaround of the growth performance in the mid-1990s? The answer can provide insight into whether the recent growth spurt in Sub-Saharan Africa is merely temporary or the beginning of a sustainable takeoff. This paper examines the sources of growth of 32 countries in Sub-Saharan Africa in a growth accounting framework. The findings suggest that the recent growth spurt is largely associated with an increase in the share of working-age population, capital accumulation, and total factor productivity, unlike previous periods. Resources play a role by attracting capital inflows, particularly from foreign direct investment and shifting labor away from agriculture. However, the growth prospects for Sub-Saharan Africa seem promising beyond resources, with steady progress in decreased fertility, increased foreign direct investment, political stability, and structural transformation.
Summary: | Since the mid-1990s, Sub-Saharan Africa
has experienced unprecedented levels of high economic
growth. A key question follows: What accounts for the
turnaround of the growth performance in the mid-1990s? The
answer can provide insight into whether the recent growth
spurt in Sub-Saharan Africa is merely temporary or the
beginning of a sustainable takeoff. This paper examines the
sources of growth of 32 countries in Sub-Saharan Africa in a
growth accounting framework. The findings suggest that the
recent growth spurt is largely associated with an increase
in the share of working-age population, capital
accumulation, and total factor productivity, unlike previous
periods. Resources play a role by attracting capital
inflows, particularly from foreign direct investment and
shifting labor away from agriculture. However, the growth
prospects for Sub-Saharan Africa seem promising beyond
resources, with steady progress in decreased fertility,
increased foreign direct investment, political stability,
and structural transformation. |
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