Publication: Sub-Saharan Africa's Recent Growth Spurt : An Analysis of the Sources of Growth
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2014-05
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2014-05-15
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Since the mid-1990s, Sub-Saharan Africa has experienced unprecedented levels of high economic growth. A key question follows: What accounts for the turnaround of the growth performance in the mid-1990s? The answer can provide insight into whether the recent growth spurt in Sub-Saharan Africa is merely temporary or the beginning of a sustainable takeoff. This paper examines the sources of growth of 32 countries in Sub-Saharan Africa in a growth accounting framework. The findings suggest that the recent growth spurt is largely associated with an increase in the share of working-age population, capital accumulation, and total factor productivity, unlike previous periods. Resources play a role by attracting capital inflows, particularly from foreign direct investment and shifting labor away from agriculture. However, the growth prospects for Sub-Saharan Africa seem promising beyond resources, with steady progress in decreased fertility, increased foreign direct investment, political stability, and structural transformation.
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“Cho, Yoonyoung; Tien, Bienvenue N.. 2014. Sub-Saharan Africa's Recent Growth Spurt : An Analysis of the Sources of Growth. Policy Research Working Paper;No. 6862. © http://hdl.handle.net/10986/18350 License: CC BY 3.0 IGO.”
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