IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v37y2001i3p71-85.html
   My bibliography  Save this article

Economic Fluctuations and Growth in Sub-Saharan Africa: The Importance of Import Instability

Author

Listed:
  • A. K. Fosu

Abstract

The traditional thesis that export instability (XI) is deleterious to economic growth in developing economies has received mixed empirical results. For African countries, recent research suggests that the effect of XI is weak, but that capital (investment) instability (KI) adversely influences economic growth. The current study argues that in many of these nations, imports are likely to be critical to the growth process, while exports represent only one of the various sources of investment resources. Hence, import instability (MI) may pose a more serious problem than XI in hindering economic growth. Employing 1968-1986 World Bank data for 33 sub-Saharan African countries, XI, KI and MI variables are calculated for each country as the standard errors around the respective 'best-fitted' trends over the sample period. These instability measures and additional World Bank data are then used to estimate an augmented production function that controls for the effects of labour, capital, and exports. The study finds that although KI is still a relevant argument of the production function, MI appears to be even more important, while XI is extraneous.

Suggested Citation

  • A. K. Fosu, 2001. "Economic Fluctuations and Growth in Sub-Saharan Africa: The Importance of Import Instability," Journal of Development Studies, Taylor & Francis Journals, vol. 37(3), pages 71-85.
  • Handle: RePEc:taf:jdevst:v:37:y:2001:i:3:p:71-85
    DOI: 10.1080/00220380412331321971
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00220380412331321971
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Léonce Ndikumana & Mina Baliamoune-Lutz, 2007. "The Growth Effects of Openness to Trade and the Role of Institutions: New Evidence from African Countries," UMASS Amherst Economics Working Papers 2007-05, University of Massachusetts Amherst, Department of Economics.
    2. repec:eee:chieco:v:48:y:2018:i:c:p:258-268 is not listed on IDEAS
    3. Patrick Guillaumont, 2009. "An Economic Vulnerability Index: Its Design and Use for International Development Policy," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 193-228.
    4. Yago, Milton & Morgan, Wyn, 2008. "The impact of policy reversal on economic performance in Sub-Saharan Africa," European Journal of Political Economy, Elsevier, vol. 24(1), pages 88-106, March.
    5. Odedokun, Matthew, 2003. "Analysis of Deviations and Delays in Aid Disbursements," WIDER Working Paper Series 026, World Institute for Development Economic Research (UNU-WIDER).
    6. repec:jed:journl:v:43:y:2018:i:1:p:1-27 is not listed on IDEAS
    7. Ogunleye, Eric Kehinde, 2011. "Emerging Evidence on the Relative Importance of Sectoral Sources of Growth in Sub-Saharan Africa," WIDER Working Paper Series 061, World Institute for Development Economic Research (UNU-WIDER).
    8. Matthew Odedokun, 2003. "Analysis Of Deviations And Delays In Aid Disbursements," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(1), pages 137-169, June.
    9. Matthew Odedokun, 2010. "Analysis of Deviations and Delays in Aid Disbursements," Working Papers id:3212, eSocialSciences.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:37:y:2001:i:3:p:71-85. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.