Explaining Ethiopia’s Growth Acceleration—The Role of Infrastructure and Macroeconomic Policy

doi:10.1016/j.worlddev.2017.03.007

Publication:
Explaining Ethiopia’s Growth Acceleration—The Role of Infrastructure and Macroeconomic Policy

dc.contributor.author	Moller, Lars Christian
dc.contributor.author	Wacker, Konstantin M.
dc.date.accessioned	2018-01-23T19:59:15Z
dc.date.available	2018-01-23T19:59:15Z
dc.date.issued	2017-08
dc.description.abstract	Ethiopia has experienced an impressive growth acceleration over the past decade. This was achieved on the back of an economic strategy emphasizing public infrastructure investment supported by heterodox macro-financial policies. This paper identifies the drivers of Ethiopia’s recent growth episode and examines the extent to which they were typical or unique. It combines country-specific information with the results of a cross-country panel regression model. We find that Ethiopia’s growth is explained well by factors correlating with growth in a broad range of countries in recent decades, including public infrastructure investment, restrained government consumption, and a conducive external environment. On the other hand, we argue that the policy mix that supported very high levels of public investment in Ethiopia was, to some extent, unique. Interestingly, macroeconomic imbalances due to this heterodox policy mix only moderately held back growth which helps explain why Ethiopia was able to grow so fast in spite of their presence: their negative effects were quantitatively much less important than the positive growth drivers they helped to achieve. The results suggest that “getting infrastructure right” may outweigh moderate shortcoming in the macro framework at early stages of development. We further relate this country-specific finding to the recent growth literature.	en
dc.identifier.citation	World Development
dc.identifier.doi	10.1596/29224
dc.identifier.issn	0305-750X
dc.identifier.uri	https://hdl.handle.net/10986/29224
dc.publisher	Elsevier
dc.rights	CC BY-NC-ND 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subject	ECONOMIC GROWTH
dc.subject	DETERMINANTS OF GROWTH
dc.subject	ECONOMIC POLICY
dc.subject	INFRASTRUCTURE
dc.subject	MACROECONOMIC POLICY
dc.subject	HETERODOXY
dc.title	Explaining Ethiopia’s Growth Acceleration—The Role of Infrastructure and Macroeconomic Policy	en
dc.type	Journal Article	en
dc.type	Article de journal	fr
dc.type	Artículo de revista	es
dspace.entity.type	Publication
okr.associatedcontent	https://www.sciencedirect.com/science/article/pii/S0305750X15305076 Journal website (version of record)	en
okr.crossref.title	Explaining Ethiopia’s Growth Acceleration—The Role of Infrastructure and Macroeconomic Policy
okr.date.disclosure	2019-04-06
okr.doctype	Publications & Research::Journal Article
okr.doctype	Publications & Research
okr.externalcontent	External Content
okr.identifier.doi	10.1016/j.worlddev.2017.03.007
okr.identifier.doi	10.1596/29224
okr.identifier.report	123213
okr.journal.nbpages	198-215
okr.language.supported	en
okr.peerreview	Academic Peer Review
okr.region.administrative	Africa
okr.region.country	Ethiopia
okr.topic	Infrastructure Economics and Finance::Infrastructure Economics
okr.topic	Macroeconomics and Economic Growth::Economic Growth
okr.topic	Macroeconomics and Economic Growth::Economic Theory & Research
okr.topic	Macroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.unit	Macro, Trade, and Investment Global Practice
okr.volume	96
relation.isAuthorOfPublication	e5daa287-d71e-5574-9de0-fd7c636e5828
relation.isAuthorOfPublication.latestForDiscovery	e5daa287-d71e-5574-9de0-fd7c636e5828