TITLE:
The Long-Run Impact of Factors Driving Africa’s Recent Growth Performance: An Empirical Investigation
AUTHORS:
Hopestone Kayiska Chavula
KEYWORDS:
Africa, Recent Growth, Pooled Mean Group Estimation (PMG), Macroeconomic Management
JOURNAL NAME:
Modern Economy,
Vol.7 No.8,
July
28,
2016
ABSTRACT: 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.