IDEAS home Printed from https://ideas.repec.org/p/cii/cepidt/1999-07.html
   My bibliography  Save this paper

The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-Off: Empirical Evidence from African Growth Episodes

Author

Listed:
  • Jean-Claude Berthelémy
  • Ludvig Soderling

Abstract

In this study, we analyse extended periods of growth in Africa based on panel estimations from 27 African countries during the 1960-1996 period. Only a dozen of such rapid growth episodes are observable in Africa since 1960, and several of them eventually came to an end. We use all existing information on macroeconomic performance in Africa in a comparative manner, in order to assess the sustainability of current growth episodes. Our main conclusion is that sustainable growth needs to be based on a balanced mix of capital accumulation, macroeconomic adjustment and structural change. In addition to more commonly used determinants of Total Factor Productivity, we construct a measure for the effect of labour reallocation as well as an index of economic diversification and estimate the impact of the latter on long-term growth. We also build an analysis of investment behaviour, which is influenced by Total Factor Productivity gains, while influencing economic growth directly through ... Dans ce document, nous analysons des périodes de croissance prolongées en Afrique sur la base d’estimations en données de panel pour 27 pays sur la période 1960-1996. Il n’y a eu qu’une douzaine de tels épisodes de croissance « rapide » en Afrique depuis 1960 et beaucoup d’entre eux se sont soldés par des échecs. Nous utilisons à titre comparatif l’ensemble des informations disponibles sur les performances macroéconomiques en Afrique, afin d’évaluer le caractère soutenable des épisodes de croissance en cours. Notre principale conclusion est que pour être soutenable, la croissance doit reposer sur une combinaison équilibrée d’accumulation du capital, d’ajustement macroéconomique et de changement structurel. En complément des déterminants usuels de la productivité globale des facteurs, nous construisons un indicateur de l’effet de la réallocation du travail ainsi qu’un indicateur de diversification économique, dont nous testons l’impact sur la croissance à long terme. Nous proposons ...

(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Jean-Claude Berthelémy & Ludvig Soderling, 1999. "The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-Off: Empirical Evidence from African Growth Episodes," Working Papers 1999-07, CEPII research center.
  • Handle: RePEc:cii:cepidt:1999-07
    as

    Download full text from publisher

    File URL: http://www.cepii.fr/PDF_PUB/wp/1999/wp1999-07.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Lucas, Robert E, Jr, 1993. "Making a Miracle," Econometrica, Econometric Society, vol. 61(2), pages 251-272, March.
    2. Acemoglu, Daron & Zilibotti, Fabrizio, 1997. "Was Prometheus Unbound by Chance? Risk, Diversification, and Growth," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 709-751, August.
    3. Jan Willem Gunning & Paul Collier, 1999. "Explaining African Economic Performance," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 64-111, March.
    4. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1203-1250.
    5. AfDB AfDB, . "African Development Report 1998," African Development Report, African Development Bank, number 15 edited by Adeleke Oluwole Salami, July-Dece.
    6. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    7. Sekkat, Khalid & Varoudakis, Aristomene, 2000. "Exchange rate management and manufactured exports in Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 61(1), pages 237-253, February.
    8. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-398, March.
    9. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    10. Amjadi, Azita & Yeats, Alexander J., 1995. "Have transport costs contributed to the relative decline of sub-Saharan African exports? Some preliminary empirical evidence," Policy Research Working Paper Series 1559, The World Bank.
    11. Feenstra, Robert C. & Madani, Dorsati & Yang, Tzu-Han & Liang, Chi-Yuan, 1999. "Testing endogenous growth in South Korea and Taiwan," Journal of Development Economics, Elsevier, vol. 60(2), pages 317-341, December.
    12. Tybout, James R, 1992. "Linking Trade and Productivity: New Research Directions," World Bank Economic Review, World Bank Group, vol. 6(2), pages 189-211, May.
    13. Alwyn Young, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 641-680.
    14. Sachs, Jeffrey D & Warner, Andrew M, 1997. "Sources of Slow Growth in African Economies," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(3), pages 335-376, October.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Gunter, Bernhard G., 2001. "Does the HIPC Initiative Achieve its Goal of Debt Sustainability?," WIDER Working Paper Series 100, World Institute for Development Economic Research (UNU-WIDER).
    2. Chris Papageorgiou & Winford H. Masanjala, 2006. "Initial Conditions, European Colonialism and Africa's Growth," Departmental Working Papers 2006-01, Department of Economics, Louisiana State University.
    3. Carmignani, Fabrizio & Mandeville, Thomas, 2014. "Never been industrialized: A tale of African structural change," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 124-137.
    4. Jean-Claude Berthelémy & Sophie Chauvin, 2000. "Structural Changes in Asia and Growth Prospects After the Crisis," Working Papers 2000-09, CEPII research center.
    5. Oleg Badunenko & Daniel Henderson & Romain Houssa, 2014. "Significant drivers of growth in Africa," Journal of Productivity Analysis, Springer, vol. 42(3), pages 339-354, December.
    6. Justin Yifu Lin, 2012. "From Flying Geese To Leading Dragons: New Opportunities and Strategies for Structural Transformation in Developing Countries," Global Policy, London School of Economics and Political Science, vol. 3(4), pages 397-409, November.
    7. Chen, Shiyi & Jefferson, Gary H. & Zhang, Jun, 2011. "Structural change, productivity growth and industrial transformation in China," China Economic Review, Elsevier, vol. 22(1), pages 133-150, March.
    8. Amimo, Oliveira & Larson, Donald W. & Bittencourt, Maurício Vaz Lobo & Graham, Douglas H., 2003. "The Potential For Financial Savings In Rural Mozambican Households," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25921, International Association of Agricultural Economists.
    9. Wang, Fei & Dong, Baomin & Yin, Xiaopeng & An, Chi, 2014. "China's structural change: A new SDA model," Economic Modelling, Elsevier, vol. 43(C), pages 256-266.
    10. Ludvig Söderling, 2002. "Escaping the Curse of Oil? The Case of Gabon," IMF Working Papers 02/93, International Monetary Fund.

    More about this item

    Keywords

    Factor markets; factor productivity; growth;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    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:cii:cepidt:1999-07. 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: (). General contact details of provider: http://edirc.repec.org/data/cepiifr.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.