Author(s)

Hopestone Kayiska Chavula

Macroeconomic Policy Division Economic Commission for Africa, Addis Ababa, Ethiopia.

The paper empirically examined the long-run impact of factors believed to have been driving Africa’s recent growth performance, using the recent analytical methodology, the pooled mean group (PMG) approach, over the period 1980-2013. The results support the narrative that Africa’s recent growth has mainly been driven by improved macroeconomic management associated with improved fiscal consolidation and monetary policy measures being undertaken by most African countries, the demographic influences as a result of increasing working-age population, trade especially as a result of relatively high commodity prices experienced over the period. However, the results show also that foreign debt, inflation rate and FDI (as a greater percentage is directed towards extractive industries) continue to weigh negatively on growth in the long-run.

Africa, Recent Growth, Pooled Mean Group Estimation (PMG), Macroeconomic Management

Chavula, H. (2016) The Long-Run Impact of Factors Driving Africa’s Recent Growth Performance: An Empirical Investigation. Modern Economy, 7, 904-920. doi: 10.4236/me.2016.78094.