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Drivers of Growth; Evidence from Sub-Saharan African Countries

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  • Manuk Ghazanchyan
  • Janet Gale Stotsky

Abstract

This study examines the drivers of growth in Sub-Saharan African countries, using aggregate data, from the past decade. We correlate recent growth experience to key determinants of growth, including private and public investment, government consumption, the exchange regime and real exchange rate, and current account liberalization, using various econometric methodologies, including fixed and random effects models, with cluster-robust standard errors. We find that, depending on the specification, higher private and public investments boost growth. Some evidence is found that government consumption exerts a drag on growth and that more flexible exchange regimes are beneficial to growth. The real exchange rate and liberalization variables are not significant.

Suggested Citation

  • Manuk Ghazanchyan & Janet Gale Stotsky, 2013. "Drivers of Growth; Evidence from Sub-Saharan African Countries," IMF Working Papers 13/236, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:13/236
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    Cited by:

    1. repec:taf:jpolrf:v:20:y:2017:i:2:p:136-164 is not listed on IDEAS
    2. International Monetary Fund, 2015. "Togo; Selected Issues," IMF Staff Country Reports 15/310, International Monetary Fund.
    3. Manuk Ghazanchyan & Janet Gale Stotsky & Qianqian Zhang, 2015. "A New Look at the Determinants of Growth in Asian Countries," IMF Working Papers 15/195, International Monetary Fund.
    4. EZZAHIDI, Elhadj & El Alaoui, Aicha, 2015. "Determinants of the recent growth surge in Africa: what changed since mid-1990s?," MPRA Paper 67792, University Library of Munich, Germany.

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