The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-Off: Empirical Evidence from African Growth Episodes

Organisation for Economic Co-operation and Development Center Working Paper No. 150

37 Pages Posted: 9 Sep 1999

See all articles by Ludvig Soderling

Ludvig Soderling

International Monetary Fund (IMF) - African Department

Jean-Claude Berthelemy

Université Paris I Panthéon-Sorbonne - Department of Economics

Date Written: July 1999

Abstract

In this article, we analyze extended periods of growth in Africa based on panel estimations from 27 African countries during the 1960-1996 period. Our main conclusion is that sustainable growth needs to be based on a balanced mix of capital accumulation, macroeconomic adjustment and structural change. In addition to more commonly used determinants of Total Factor Productivity, we construct a measure for the effect of labor reallocation as well as an index of economic diversification and estimate the impact of the latter on long term growth. Further we propose a framework for the analysis of extended growth periods, in view of assessing their sustainability.

JEL Classification: O47, E22, O11, O55

Suggested Citation

Soderling, Ludvig and Berthelemy, Jean-Claude, The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-Off: Empirical Evidence from African Growth Episodes (July 1999). Organisation for Economic Co-operation and Development Center Working Paper No. 150, Available at SSRN: https://ssrn.com/abstract=176208 or http://dx.doi.org/10.2139/ssrn.176208

Ludvig Soderling (Contact Author)

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Jean-Claude Berthelemy

Université Paris I Panthéon-Sorbonne - Department of Economics ( email )

12 place du Panthéon
Paris, IL
France

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