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Economic Growth from a Structural Unobserved Component Modeling: The Case of Senegal

Author

Listed:
  • Samuel Bates

    (LEDa: PSL Research University (Paris-Dauphine))

  • Cheikh Tidiane Ndiaye

    (LARES : University Gaston Berger)

Abstract

Using the structural unobserved component (UC) modeling, this study analyzes the Senegalese economic growth path after 5 decades of independence by focusing on the potential output, the GDP cycle and the type of shocks on the GDP. Empirical evidence suggests that an inventory cycle mainly drives the GDP short-term component with a time-varying extent of fluctuations. The main sources of shocks result from external determining factors with an impact on the long run. However, their persistent effects have been mitigated particularly since the devaluation of 1994. International institutions have partially motivated the relative successful GDP growth path of Senegal. Nevertheless, some structural internal improvements are needed to balance the financial and productive flaws in order to consolidate both the "resilience" to shocks and the macroeconomic stabilization.

Suggested Citation

  • Samuel Bates & Cheikh Tidiane Ndiaye, 2014. "Economic Growth from a Structural Unobserved Component Modeling: The Case of Senegal," Economics Bulletin, AccessEcon, vol. 34(2), pages 951-965.
    • Handle: RePEc:ebl:ecbull:eb-13-00499
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    More about this item

    Keywords

    GDP growth; Unobserved component modeling; Economic history of Senegal;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

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