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.

Bibliographic Details

Main Authors:	Cho, Yoonyoung, Tien, Bienvenue N.
Language:	English en_US
Published:	World Bank, Washington, DC 2014-05
Subjects:	AGGREGATE INCOME, AGGREGATE PRODUCTION FUNCTION, AGRICULTURAL PRODUCTIVITY, AGRICULTURE, ANNUAL DEPRECIATION RATE, ANNUAL GROWTH, BARRIER, BUSINESS ENVIRONMENT, BUSINESS PRACTICES, CAPITA INCOME, CAPITAL ACCUMULATION, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL INFLOW, CAPITAL INFLOWS, CAPITAL STOCK, CIVIL LIBERTIES, CIVIL WARS, COMMODITY, COMMODITY PRICE, COMMODITY PRICES, COMPARATIVE ANALYSIS, CONTRACEPTIVE METHODS, CURRENT ACCOUNT BALANCE, DATA AVAILABILITY, DEBT, DECLINES IN FERTILITY, DEMOGRAPHIC, DEMOGRAPHIC CHANGE, DEMOGRAPHIC TRANSITION, DEPENDENCY RATIO, DEPENDENCY RATIOS, DETERMINANTS OF GROWTH, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPMENT ASSISTANCE, DEVELOPMENT ECONOMICS, DEVELOPMENT INDICATORS, DEVELOPMENT POLICY, DIVIDEND, DOMESTIC SAVING, ECONOMIC ACTIVITY, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC DOWNTURN, ECONOMIC ENVIRONMENT, ECONOMIC GROWTH, ECONOMIC OUTLOOK, ECONOMIC PERFORMANCE, ECONOMIC RESEARCH, ECONOMIC STUDIES, ECONOMIC TAKEOFF, EDUCATION LEVEL, EDUCATIONAL ATTAINMENT, ELASTICITY, ELDERLY, EMERGING ECONOMIES, EMPIRICAL ESTIMATES, EMPIRICAL EVIDENCE, FACTOR ACCUMULATION, FEMALE LABOR FORCE, FERTILITY, FERTILITY DECLINE, FERTILITY DECLINES, FERTILITY RATE, FERTILITY RATES, FINANCIAL INFLOWS, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FIXED CAPITAL, FOREIGN DIRECT INVESTMENT, FOREIGN PORTFOLIO, FOREIGN PORTFOLIO INVESTMENT, FUNCTIONAL FORM, GDP, GDP PER CAPITA, GLOBAL BUSINESS, GLOBAL LEVEL, GLOBAL RECESSION, GROSS DOMESTIC PRODUCT, GROSS FIXED CAPITAL FORMATION, GROSS NATIONAL INCOME, GROWTH ACCELERATIONS, GROWTH ACCOUNTING, GROWTH LITERATURE, GROWTH PATTERN, GROWTH PERFORMANCE, GROWTH PROSPECTS, GROWTH RATE, GROWTH RATES, GROWTH TRAGEDY, HIGH GROWTH, HUMAN CAPITAL, HUMAN DEVELOPMENT, IMPACTS OF POLICIES, IMPROVING PRODUCTIVITY, INCOME DISTRIBUTION, INCOME GROUPS, INCOME SHARE, INCREASE IN LABOR, INDIVIDUAL RIGHTS, INDUSTRIAL COUNTRIES, INDUSTRIAL DEVELOPMENT, INTANGIBLE, INTEREST RATES, INTERNATIONAL BUSINESS, INTERNATIONAL CAPITAL, INTERNATIONAL LABOUR ORGANIZATION, INTERNATIONAL TRADE, INVENTORY, INVESTMENT CLIMATE, INVESTMENT DECISIONS, INVESTMENT IN EDUCATION, LABOR FORCE, LABOR MARKET, LEVEL OF CAPITAL, LIFE EXPECTANCY, LOW FERTILITY, LOW-INCOME COUNTRIES, MACROECONOMICS, MICRO DATA, MIGRANT, MIGRANT WORKERS, MONETARY ECONOMICS, MORTALITY, NATIONAL ACCOUNTS, NATIONAL INCOME, NATURAL RESOURCE, NET EXPORTS, NUMBER OF CHILDREN, NUMBER OF WORKERS, OFFICIAL DEVELOPMENT ASSISTANCE, OPEN ECONOMY, OUTPUT, OUTPUT GROWTH, OUTPUT PER CAPITA, PER CAPITA GROWTH, PER CAPITA INCOME, POLICY DISCUSSIONS, POLICY MAKERS, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLICY RESPONSE, POLITICAL ECONOMY, POLITICAL INSTABILITY, POLITICAL RIGHTS, POLITICAL STABILITY, POOR COUNTRIES, POPULATION AND DEVELOPMENT, POPULATION DECLINES, POPULATION DYNAMICS, POPULATION GROWTH, POPULATION INCREASES, POPULATION MATTERS, POPULATION RESEARCH, POVERTY REDUCTION, PRIVATE CAPITAL, PRIVATE CAPITAL FLOWS, PRIVATE INVESTMENT, PRODUCTION FUNCTION, PRODUCTIVITY CHANGE, PRODUCTIVITY GROWTH, PROMOTING GROWTH, PUBLIC INVESTMENT, RAPID GROWTH, RELATIVE CONTRIBUTION, RELATIVE IMPORTANCE, REMITTANCES, RESPECT, RICH COUNTRIES, RULE OF LAW, SAVINGS, SEX, SHARE OF CAPITAL, SHARE OF LABOR, SKILLED LABOR, SOCIAL CAPITAL, SOCIAL PROTECTION, STATISTICAL DATA, SURPLUS LABOR, SUSTAINABLE DEVELOPMENT, SUSTAINABLE GROWTH, TECHNICAL CHANGE, TECHNOLOGICAL PROGRESS, TFP, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, TRADE DEFICIT, TRADE OPENNESS, UNDERESTIMATES, WAR, WEALTH, WORKFORCE, WORKING-AGE POPULATION, WORLD DEVELOPMENT INDICATORS,
Online Access:	http://documents.worldbank.org/curated/en/2014/05/19460685/sub-saharan-africas-recent-growth-spurt-analysis-sources-growth https://hdl.handle.net/10986/18350
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