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Explaining African Economic Performance

  • Jan Willem Gunning
  • Paul Collier

Africa has had slow growth and a massive exodus of capital. In many respects it has been the most capital-hostile region. We review and interpret the aggregate-level and microeconomic literatures to identify the key explanations for this performance. There is a reasonable correspondence of the two sets of evidence, pointing to four factors as being important. These are a lack of openness to international trade; a high-risk environment; a low level of social capital; and poor infrastructure. These problems are to a substantial extent attributable to government behavior, and the paper includes a review of the political economy literature addressing that behavior.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jel.37.1.64
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Article provided by American Economic Association in its journal Journal of Economic Literature.

Volume (Year): 37 (1999)
Issue (Month): 1 (March)
Pages: 64-111

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Handle: RePEc:aea:jeclit:v:37:y:1999:i:1:p:64-111
Note: DOI: 10.1257/jel.37.1.64
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