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Is Mozambican Growth Sustainable? A Comprehensive Wealth Accounting Prospect

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  • Timothée, Ollivier

Abstract

We estimate the wealth of Mozambique in 2000 and 2005 in order to assess the sustainability of its development path. Our methodology builds on Arrow et al. (2007). We show that Mozambican growth is driven mainly by human and physical capital accumulation, while the pressure on natural capital remains low. Moreover, changes in knowledge and institutions significantly enhance the outcome of the different capital assets while population growth has a strong downward effect on wealth per capita. In the end, we conclude that Mozambique, unlike many other sub-Saharan countries, followed a sustainable growth path in recent times.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16603.

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Date of creation: Jul 2009
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Handle: RePEc:pra:mprapa:16603

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Keywords: natural capital; sustainable development; Mozambique; comprehensive wealth accounting;

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  1. Asheim, Geir B. & Buchholz, Wolfgang & Hartwick, John M. & Mitra, Tapan & Withagen, Cees, 2007. "Constant savings rates and quasi-arithmetic population growth under exhaustible resource constraints," Journal of Environmental Economics and Management, Elsevier, vol. 53(2), pages 213-229, March.
  2. Dasgupta, Partha & M Ler, Karl-G Ran, 2000. "Net national product, wealth, and social well-being," Environment and Development Economics, Cambridge University Press, Cambridge University Press, vol. 5(01), pages 69-93, February.
  3. Partha Dasgupta, 2009. "The Welfare Economic Theory of Green National Accounts," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 42(1), pages 3-38, January.
  4. Benfica, Rui M.S. & Zandamela, Julieta & Miguel, Arlindo & de Sousa, Natercia, 2005. "The Economics of Smallholder Households in Tobacco and Cotton Growing Areas of the Zambezi Valley of Mozambique," Food Security Collaborative Working Papers, Michigan State University, Department of Agricultural, Food, and Resource Economics 56064, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  5. World Bank, 2005. "World Development Indicators 2005," World Bank Publications, The World Bank, number 12425, August.
  6. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 12(2), pages 111-134.
  7. repec:wbk:wbpubs:12426 is not listed on IDEAS
  8. Susana Ferreira & Kirk Hamilton & Jeffrey R. Vincent, 2008. "Comprehensive Wealth and Future Consumption: Accounting for Population Growth," World Bank Economic Review, World Bank Group, World Bank Group, vol. 22(2), pages 233-248, May.
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