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The African Growth Gap and the Realization of the MDGs

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  • Knedlik, Tobias
  • Reinowski, Eva

Abstract

Earlier literature on economic growth models identified Africa specific determinates of economic growth. In standard models of economic growth Africa dummies were significant. A more resent strand of literature attributes the significance of Africa dummies to inappropriate estimation techniques. If growth models were appropriately estimated, the Africa dummy would disappear. The analysis of this paper reproduces the Systems-GMM approach, which was found to be appropriate, with an extended sample. It turns out that an Africa dummy appears to be significant. The analysis is extended by the search for potential explanations of an Africa dummy. The analysis finds that infrastructure, access to high tech, R&D, and business environment are factors that explain part of the anomaly of African growth processes. The MDGs reflect the specifics of African growth processes only partially. They should therefore not be the sole focus of growth oriented economic policy. --

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Bibliographic Info

Paper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Zurich 2008 with number 23.

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Date of creation: 2008
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Handle: RePEc:zbw:gdec08:23

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Keywords: economic growth models; Africa dummy; MDGs;

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  1. Stan du Plessis & Sonja Keller, 2002. "Bias correction in a dynamic panel data model of economic growth: The African dummy re-examined," Working Papers 04/2002, Stellenbosch University, Department of Economics.
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