Abstract

This section reports the results of an empirical investigation of the factors that influenced growth, savings, and investment in sub-Saharan Africa during 1986–92. A multiple regression framework is used to separate out the effects of macroeconomic stability on growth, savings, and investment while controlling for the effects of other variables. The empirical methodology used is outlined in the Appendix. Actual data covering 39 countries during 1986–92 were used.52 The time span covered by this study is somewhat short, and, thus, the empirical findings should be viewed as preliminary and interpreted with caution. However, these results tend to indicate that the behavior of growth, private investment, and domestic savings in sub-Saharan Africa is consistent with certain theoretical regularities. The findings also confirm the results of several previous empirical studies of growth, savings, and investment. In particular, these aggregates reacted favorably to a stable macroeconomic environment during 1986–92. The evidence suggests that macroeconomic stability is conducive to higher rates of savings and investment and to faster rates of economic growth. Nevertheless, the direction of causality between macroeconomic policy variables and foreign aid on the one hand, and growth, savings, and investment on the other hand, are not clear-cut. A full investigation of these causal relationships is beyond the scope of this study. However, the broad correlations presented in this section are indicative of the important links between macroeconomic stability and growth, savings, and investment.

Cited By

Growth, Savings, and Investment, 1986-93
  • Agarwala, Ramgopal, Price Distortions and Growth in Developing Countries,” World Bank Staff Working Paper No. 575, Management and Development Series No. 2 (Washington: World Bank, July 1983).

    • Search Google Scholar
    • Export Citation
  • Agenor, Pierre R., Output, Devaluation and the Real Exchange Rate in Developing Countries,” Weltwirtschaftliches Archiv, Vol. 127 (1991), pp. 1841.

    • Search Google Scholar
    • Export Citation
  • Aghevli, Bijan B., James Boughton, Peter Montiel, Delano Villanueva, and Geoffrey Woglom, The Role of National Saving in the World Economy: Recent Trends and Prospects, IMF Occasional Paper No. 67 (Washington: International Monetary Fund, March 1990).

    • Search Google Scholar
    • Export Citation
  • Alam, Shahid M., Trade Orientation and Macroeconomic Performance in LDCs: An Empirical Study,” Economic Development and Cultural Change, Vol. 39 (July 1991), pp. 83947.

    • Search Google Scholar
    • Export Citation
  • Ando, Albert, and Franco Modigliani, The ‘Life Cycle’ Hypothesis of Saving: Aggregate Implications and Tests,” American Economic Review, Vol. 53 (1963), pp. 5584.

    • Search Google Scholar
    • Export Citation
  • Antle, John M., Infrastructure and Aggregate Agricultural Productivity: International Evidence,” Economic Development and Cultural Change, Vol. 31 (April 1983), pp. 60920.

    • Search Google Scholar
    • Export Citation
  • Barro, Robert J., Are Government Bonds Net Wealth?,” Journal of Political Economy, Vol. 82 (Nov./Dec. 1974), pp. 1095117.

  • Barro, Robert J., Rational Expectations and the Role of Monetary Policy,” Journal of Monetary Economics, Vol. 2 (January 1976), pp. 132.

    • Search Google Scholar
    • Export Citation
  • Barro, Robert J., A Capital Market in an Equilibrium Business Cycle Model,” Econometrica, Vol. 48 (1980), pp. 1393417.

  • Barro, Robert J., A Cross-Country Study of Growth, Saving, and Government,” NBER Working Paper No. 2855 (Cambridge, Massachusetts: National Bureau of Economic Research, February 1989).

    • Search Google Scholar
    • Export Citation
  • Barro, Robert J., Government Spending in a Simple Model of Endogenous Growth,” Journal of Political Economy, Vol. 98 (October 1990), pp. S10325.

    • Search Google Scholar
    • Export Citation
  • Barro, Robert J., Economic Growth in a Cross Section of Countries,” Quarterly Journal of Economics, Vol. 106 (May 1991), pp. 40744.

    • Search Google Scholar
    • Export Citation
  • Barro, Robert J., and Xavier Sala-i-Martin, “Convergence,” Journal of Political Economy, Vol. 100 (April 1992), pp. 22351.

  • Bauer, P. T., Equality, the Third World, and Economic Delusion, (Cambridge, Massachusetts: Harvard University Press, 1981).

  • Becker, Gary, Kevin Murphy, and Robert Tamura, Human Capital, Fertility, and Economic Growth,” Journal of Political Economy, Vol. 98 (October 1990), pp. 1237.

    • Search Google Scholar
    • Export Citation
  • Bencivenga, Valerie R., and Bruce D. Smith, Financial Intermediation and Endogenous Growth,” Review of Economic Studies, Vol. 58 (April 1991), pp. 195209.

    • Search Google Scholar
    • Export Citation
  • Bier, Willem, Macroeconomic Models for the PC,” IMF Working Paper 92/110 (Washington: International Monetary Fund, December 1992).

  • Binswanger, Hans P., Maw-Cheng Yang, Alan Bowers, and Yair Mundlak, On the Determinants of Cross-Country Aggregate Agricultural Supply,” Journal of Econometrics, Vol. 36 (Sept./Oct. 1987), pp. 11131.

    • Search Google Scholar
    • Export Citation
  • Blanchard, Olivier J., and Stanley Fischer, Lectures on Macroeconomics (Cambridge, Massachusetts: MIT Press, 1989).

  • Blejer, Mario I., and Mohsin S. Khan, Government Policy and Private Investment in Developing Countries,” IMF Staff Papers, Vol. 31 (June 1984), pp. 379403.

    • Search Google Scholar
    • Export Citation
  • Bond, Marian E., Agricultural Responses to Prices in Sub-Saharan African Countries,” IMF Staff Papers, Vol. 30 (December 1983), pp. 70326.

    • Search Google Scholar
    • Export Citation
  • Borensztein, Eduardo (1990a), “Debt Overhang, Credit Rationing and Investment,” Journal of Development Economics, Vol. 32 (April 1990), pp. 31535.

    • Search Google Scholar
    • Export Citation
  • Borensztein, Eduardo (1990b), “Debt Overhang, Debt Reduction and Investment: The Case of the Philippines,” IMF Working Paper 90/77 (Washington: International Monetary Fund, September 1990).

    • Search Google Scholar
    • Export Citation
  • Borensztein, Eduardo, and Carmen M. Reinhart, The Macroeconomic Determinants of Commodity Prices,” IMF Staff Papers, Vol. 41 (June 1994), pp. 23661.

    • Search Google Scholar
    • Export Citation
  • Branson, William H., Stabilization, Stagflation and Investment Incentives: The Case of Kenya 1979–80,” in Economic Adjustment and Exchange Rates in Developing Countries, edited by S. Edwards and L. Ahamed (Chicago: University of Chicago Press, 1986).

    • Search Google Scholar
    • Export Citation
  • Breusch, T. S., and A. R. Pagan, A Simple Test for Heteroscedasticity and Random Coefficient Variation,” Econometrica, Vol. 47 (September 1979), pp. 128794.

    • Search Google Scholar
    • Export Citation
  • Cassen, Robert, Does Aid Work?: Report to an Intergovernmental Tax Force (Oxford, England: Clarendon Press, 1986).

  • Chenery, Hollis, and T. N. Srinivasan (eds.), Handbook of Development Economics, Handbooks in Economics 9, Vols. 1–2, (Amsterdam: North-Holland, 1988–89).

    • Search Google Scholar
    • Export Citation
  • Clement, Jean, Rationale for the CFA Franc Realignment,” IMF Survey, Vol. 23 (February 7, 1994), pp. 3336.

  • Collins, Susan M, Savings Behavior in Ten Developing Countries,” Discussion Paper No. 1442, Harvard Institute of Economic Research (Cambridge, Massachusetts: Harvard University, 1989).

    • Search Google Scholar
    • Export Citation
  • Conolly, Michael, Exchange Rates, Real Economic Activity and the Balance of Payments: Evidence from the 1960s,” in Recent Issues in the Theory of Flexible Exchange Rates, edited by E. Claassen and P. Salin (Amsterdam: North-Holland, 1983).

    • Search Google Scholar
    • Export Citation
  • Corbo, Vittorio, and Klaus Schmidt-Hebbel, Public Policies and Saving in Developing Countries,” Journal of Development Economics, Vol. 36 (July 1991), pp. 89115.

    • Search Google Scholar
    • Export Citation
  • Cottani, Joaquin A., Domingo F. Cavallo, and M. Shahbaz Khan, “Real Exchange Rate Behavior and Economic Performance in LDCs,” Economic Development and Cultural Change, Vol. 39 (October 1990), pp. 6172.

    • Search Google Scholar
    • Export Citation
  • De Gregorio, Jose, Economic Growth in Latin America,” Journal of Development Economics, Vol. 39 (July 1992), pp. 5984.

  • De Gregorio, Jose, Inflation, Taxation, and Long-Run Growth,” Journal of Monetary Economics, Vol. 31 (June 1993), pp. 27198.

  • De Gregorio, Jose, and Pablo E. Guidotti, Financial Development and Economic Growth,” IMF Working Paper 92/101 (Washington: International Monetary Fund, December 1992).

    • Search Google Scholar
    • Export Citation
  • De Long, J. Bradford, Productivity Growth, Convergence, and Welfare: Comment,” American Economic Review, Vol. 78 (October 1988), pp. 113854.

    • Search Google Scholar
    • Export Citation
  • Dhonte, Pierre, Jean Clement, Nbuyamu Matungulu, and Dawn Rehm, Economic Trends in Africa: The Economic Performance of Sub-Saharan African Countries,” IMF Working Paper 93/71 (Washington: International Monetary Fund, September 1993).

    • Search Google Scholar
    • Export Citation
  • Dollar, David, Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976–1985,” Economic Development and Cultural Change, Vol. 40 (April 1992), pp. 52344.

    • Search Google Scholar
    • Export Citation
  • Easterly, William, and Ross Levine, Is Africa Different? Evidence from Growth Regressions” (unpublished; Washington: World Bank, March 1993).

    • Search Google Scholar
    • Export Citation
  • Easterly, William, and Sergio Rebelo, Fiscal Policy and Economic Growth: An Empirical Investigation,” Journal of Monetary Economics, Vol. 32 (December 1993), pp. 41758.

    • Search Google Scholar
    • Export Citation
  • Easterly, William, Robert King, Ross Levine, and Sergio Rebelo, How Do National Policies Affect Long-Run Growth?: A Research Agenda,” World Bank Working Paper WPS 794 (Washington: World Bank, October 1991).

    • Search Google Scholar
    • Export Citation
  • Eaton, Jonathan, Public Debt Guarantees and Private Capital Flight,” World Bank Economic Review, Vol. 1 (May 1987), pp. 37795.

  • Edwards, Sebastian, The Short-Run Relation Between Growth and Inflation in Latin America: Comment,” American Economic Review, Vol. 73 (June 1983), pp. 47782.

    • Search Google Scholar
    • Export Citation
  • Edwards, Sebastian, Are Devaluations Contractionary?” Review of Economics and Statistics, Vol. 68 (August 1986), pp. 501508.

  • Edwards, Sebastian, Exchange Rate Misalignment in Developing Countries (Baltimore, Maryland: Johns Hopkins University Press, 1988).

  • Edwards, Sebastian, Real Exchange Rates, Devaluation, and Adjustment: Exchange Rate Policy in Developing Countries (Cambridge, Massachusetts: MIT Press, 1989).

    • Search Google Scholar
    • Export Citation
  • Edwards, Sebastian, Trade Orientation, Distortions and Growth in Developing Countries,” Journal of Development Economics, Vol. 39 (July 1992), pp. 3157.

    • Search Google Scholar
    • Export Citation
  • Edwards, Sebastian, Openness, Trade Liberalization, and Growth in Developing Countries,” Journal of Economic Literature, Vol. 31 (September 1993), pp. 135893.

    • Search Google Scholar
    • Export Citation
  • Feder, Gershon, On Exports and Economic Growth,” Journal of Development Economics, Vol. 12 (Feb./Apr. 1983), pp. 5974.

  • Fischer, Stanley, Macroeconomics, Development, and Growth,” NBER Macroeconomics Annual (1991), pp. 32964.

  • Fischer, Stanley, The Role of Macroeconomic Factors in Growth,” Journal of Monetary Economics, Vol. 32 (December 1993), pp. 485512.

    • Search Google Scholar
    • Export Citation
  • Fishlow, Albert, Review of Handbook of Development Economics,” Journal of Economic Literature, Vol. 29 (December 1991), pp. 172837.

    • Search Google Scholar
    • Export Citation
  • Fosu, Augustin Kwasi, Exports and Economic Growth: The African Case,” World Development, Vol. 18 (June 1990), pp. 83135.

  • Fosu, Augustin Kwasi, Capital Instability and Economic Growth in Sub-Saharan Africa,” Journal of Development Studies, Vol. 28 (1991), pp. 7485.

    • Search Google Scholar
    • Export Citation
  • Fosu, Augustin Kwasi, Political Instability and Economic Growth: Evidence from Sub-Saharan Africa,” Economic Development and Cultural Change, Vol. 40 (July 1992), pp. 82941.

    • Search Google Scholar
    • Export Citation
  • Fry, Maxwell J., Money and Capital or Financial Deepening in Economic Development?,” Journal of Money Credit and Banking, Vol. 10 (November 1978), pp. 46475.

    • Search Google Scholar
    • Export Citation
  • Fry, Maxwell J., Saving, Investment, Growth and the Cost of Financial Repression,” World Development, Vol. 8 (April 1980), pp. 31727.

    • Search Google Scholar
    • Export Citation
  • Fry, Maxwell J., Terms of Trade and National Saving Rates in Asia,” Economics Letters, Vol. 17 (1985), pp. 27175.

  • Fry, Maxwell J., Terms of Trade Dynamics in Asia: An Analysis of National Saving and Domestic Investment Responses to Terms of Trade Changes in 14 Asian LDCs,” Journal of International Money and Finance, Vol. 5 (March 1986), pp. 5773.

    • Search Google Scholar
    • Export Citation
  • Fry, Maxwell J., Foreign Debt Instability: An Analysis of National Saving and Domestic Investment Responses to Foreign Debt Accumulation in 28 Developing Countries,” Journal of International Money and Finance, Vol. 8 (September 1989), pp. 31544.

    • Search Google Scholar
    • Export Citation
  • Gastil, Raymond D., Freedom in the World: Political Rights and Civil Liberties, 1986–1987 (New York: Greenwood Press, 1987).

  • Gelb, Alan H., Financial Policies, Growth and Efficiency,” World Bank Working Paper WPS 202 (Washington: World Bank, 1989).

  • Ghura, Dhaneshwar, Macroeconomic Policy, External Forces and Economic Growth in Sub-Saharan Africa” (paper presented at the Southern Economic Association meetings, Washington, November 1992).

    • Search Google Scholar
    • Export Citation
  • Ghura, Dhaneshwar, and Thomas J. Grennes, The Real Exchange Rate and Macroeconomic Performance in Sub-Saharan Africa,” Journal of Development Economics, Vol. 42 (October 1993), pp. 15574.

    • Search Google Scholar
    • Export Citation
  • Ghura, Dhaneshwar, and Thomas J. Grennes, Aggregate Trade Response to Economy-Wide Distortions in Sub-Saharan Africa,” Journal of African Economies (forthcoming, 1994).

    • Search Google Scholar
    • Export Citation
  • Giovannini, Alberto, The Interest Elasticity of Savings in Developing Countries: The Existing Evidence,” World Development, Vol. 11 (July 1983), pp. 601607.

    • Search Google Scholar
    • Export Citation
  • Giovannini, Alberto, Saving and the Real Interest Rate in LDCs,” Journal of Development Economics, Vol. 18 (August 1985), pp. 197217.

    • Search Google Scholar
    • Export Citation
  • Goldfeld, S.M., and R.E. Quandt, Some Tests for Homoscedasticity,” Journal of the American Statistical Association, Vol. 60 (1965), pp. 53947.

    • Search Google Scholar
    • Export Citation
  • Greene, Joshua, and Delano Villanueva, Private Investment in Developing Countries: An Empirical Analysis,” IMF Staff Papers, Vol. 38 (March 1991), pp. 3358.

    • Search Google Scholar
    • Export Citation
  • Greenwood, Jeremy, and Boyan Jovanovic, Financial Development, Growth, and Distribution of Income,” Journal of Political Economy, Vol. 98 (October 1990), pp. 10761107.

    • Search Google Scholar
    • Export Citation
  • Grier, Kevin, and Gordon Tullock, An Empirical Analysis of Cross-National Economic Growth, 1951–80,” Journal of Monetary Economics, Vol. 24 (September 1989), pp. 25976.

    • Search Google Scholar
    • Export Citation
  • Grossman, Gene M., and Elhanan Helpman (1989a), “Endogenous Product Cycles,” NBER Working Paper 2913 (Cambridge, Massachusetts: National Bureau of Economic Research, March 1989).

    • Search Google Scholar
    • Export Citation
  • Grossman, Gene M., and Elhanan Helpman (1989b), “Growth and Welfare in a Small Open Economy,” NBER Working Paper 2970 (Cambridge, Massachusetts: National Bureau of Economic Research, July 1989).

    • Search Google Scholar
    • Export Citation
  • Guide, Anne Marie, and Mariane Schulze-Ghattas, Purchasing Power Parity Based Weights for the World Economic Outlook,” in Staff Studies for the World Economic Outlook (Washington: International Monetary Fund, December 1993).

    • Search Google Scholar
    • Export Citation
  • Gupta, K., Aggregate Savings, Financial Intermediation, and Interest Rate,” Review of Economics and Statistics, Vol. 69 (May 1987), pp. 30311.

    • Search Google Scholar
    • Export Citation
  • Gupta, K., and M.A. Islam, Foreign Capital, Savings, and Growth: An International Cross-Section Study (Dordrecht, Holland: Reidel Pub. Co., 1983).

    • Search Google Scholar
    • Export Citation
  • Gyimah-Brempong, Kwabena, Export Instability and Economic Growth in Sub-Saharan Africa,” Economic Development and Cultural Change, Vol. 39 (July 1991), pp. 81528.

    • Search Google Scholar
    • Export Citation
  • Gylfason, Thorvaldur, and Michael Schmid, Do Devaluations Cause Stagflation?” Canadian Journal of Economics, Vol. 16 (November 1983), pp. 64154.

    • Search Google Scholar
    • Export Citation
  • Hadjimichael, Michael T., Thomas Rumbaugh, and Eric Verreydt, The Gambia: Economic Adjustment in a Small Open Economy, IMF Occasional Paper No. 100 (Washington: International Monetary Fund, October 1992).

    • Search Google Scholar
    • Export Citation
  • Hammer, Jeffrey S., Population Growth and Savings in LDCs: A Survey Article,” World Development, Vol. 14 (May 1986), pp. 57991.

  • Haque, Nadeem U., and Peter Montiel, Consumption in Developing Countries: Tests for Liquidity Constraints and Finite Horizons,” Review of Economics and Statistics, Vol. 71 (August 1989), pp. 40815.

    • Search Google Scholar
    • Export Citation
  • Harberger, Arnold C., Currency Depreciation, Income, and the Balance of Trade,” Journal of Political Economy, Vol. 58 (1950), pp. 4760.

    • Search Google Scholar
    • Export Citation
  • Hsiao, Cheng, Analysis of Panel Data (Cambridge, England: Cambridge University Press, 1986).

  • Husain, Ishrat, and Rashid Faruqee (eds.), Adjustment in Africa: Lessons from Country Case Studies (Washington: World Bank, 1994).

  • IMF Survey, Special Supplement on African Franc Zone (March 21, 1994).

  • International Monetary Fund, Interest Rate Policies in Developing Countries, IMF Occasional Paper No. 22 (Washington: International Monetary Fund, October 1983).

    • Search Google Scholar
    • Export Citation
  • International Monetary Fund, (1993a), World Economic Outlook, May 1993, World Economic and Financial Surveys (Washington: International Monetary Fund, May 1993).

    • Search Google Scholar
    • Export Citation
  • International Monetary Fund, (1993b), World Economic Outlook, October 1993, World Economic and Financial Surveys (Washington: International Monetary Fund, October 1993).

    • Search Google Scholar
    • Export Citation
  • Jaeger, William, The Impact of Policy in African Agriculture: An Empirical Investigation,” World Bank Working Paper WPS 640 (Washington: World Bank, 1991).

    • Search Google Scholar
    • Export Citation
  • Judge, George G., W.E. Griffiths, R. Carter Hill, Helmut Lutkepohl, and Tsoung-Chao Lee, The Theory and Practice of Econometrics, 2nd edition (New York: Wiley, 1985).

    • Search Google Scholar
    • Export Citation
  • Kapur, Ishan, Michael T. Hadjimichael, Paul Hilbers, Jerald Schiff, and Philippe Szymczak, Ghana: Adjustment and Growth, 1983–91, Occasional Paper No. 86 (Washington: International Monetary Fund, September 1991).

    • Search Google Scholar
    • Export Citation
  • Khan, Mohsin S., Macroeconomic Adjustment in Developing Countries: A Policy Perspective,” World Bank Research Observer, Vol. 2 (January 1987), pp. 2342.

    • Search Google Scholar
    • Export Citation
  • Khan, Mohsin S., and Malcolm D. Knight, Some Theoretical and Empirical Issues Relating to Economic Stabilization in Developing Countries,” World Development, Vol. 10 (September 1982), pp. 70930.

    • Search Google Scholar
    • Export Citation
  • Khan, Mohsin, and Manmohan S. Kumar, Public and Private Investment and the Convergence of Per Capita Incomes in Developing Countries,” IMF Working Paper 93/51 (Washington: International Monetary Fund, June 1993).

    • Search Google Scholar
    • Export Citation
  • Khan, Mohsin, and Jonathan D. Ostry, Response of the Equilibrium Real Exchange Rate to Real Disturbances in Developing Countries,” IMF Working Paper 91/3 (Washington: International Monetary Fund, January 1991).

    • Search Google Scholar
    • Export Citation
  • Khan, Mohsin, and Carmen Reinhart, Private Investment and Economic Growth in Developing Countries,” World Development, Vol. 18 (January 1990), pp. 1927.

    • Search Google Scholar
    • Export Citation
  • Killick, Tony, The Developmental Effectiveness of Aid to Africa,” World Bank Working Paper WPS 646 (Washington: World Bank, 1991).

  • Killick, Tony, Does the IMF Really Help Developing Countries?,” Briefing Paper, Overseas Development Institute (London, April 1993).

    • Search Google Scholar
    • Export Citation
  • King, Robert G., and Ross E. Levine, Finance and Growth: Schumpeter Might Be Right,” Quarterly Journal of Economics, Vol. 108 (August 1993), pp. 71737.

    • Search Google Scholar
    • Export Citation
  • Knight, Malcolm, Norman Loayza, and Delano Villanueva, Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach,” IMF Staff Papers, Vol. 40 (September 1993), pp. 51241.

    • Search Google Scholar
    • Export Citation
  • Kormendi, Roger C., and Philip G. Meguire, Macroeconomic Determinants of Growth: Cross-Country Evidence,” Journal of Monetary Economics, Vol. 16 (September 1985), pp. 14163.

    • Search Google Scholar
    • Export Citation
  • Krueger, Anne O., The Political Economy of the Rent-Seeking Society,” American Economic Review, Vol. 64 (June 1974), pp. 291303.

    • Search Google Scholar
    • Export Citation
  • Lahiri, Ashok K., Dynamics of Asian Savings: The Role of Growth and Age Structure,” IMF Staff Papers, Vol. 36 (March 1989), pp. 22861.

    • Search Google Scholar
    • Export Citation
  • Laursen, Svend, and Lloyd A. Metzler, Flexible Exchange Rates and the Theory of Employment,” Review of Economics and Statistics, Vol. 32 (November 1950), pp. 28199.

    • Search Google Scholar
    • Export Citation
  • Leff, Nathaniel H., Dependency Rates and Savings Rates,” American Economic Review, Vol. 59 (December 1969), pp. 88696.

  • Lele, Uma, James Gockowski, and Kofi Adu-Nyako, Economics, Politics, and Ethics of Primary Commodity Development: How Can Poor Countries in Africa Benefit the Most?,” IMF Working Paper 94/23 (Washington: International Monetary Fund, February 1994).

    • Search Google Scholar
    • Export Citation
  • Levine, Ross, and David Renelt, A Sensitivity Analysis of Cross-Country Growth Regressions,” American Economic Review, Vol. 82 (September 1992), pp. 94263.

    • Search Google Scholar
    • Export Citation
  • Lindauer, David L., and Ann D. Velenchik, Government Spending in Developing Countries: Trends, Causes, and Consequences,” World Bank Research Observer, Vol. 7 (January 1992), pp. 5978.

    • Search Google Scholar
    • Export Citation
  • Lucas, Robert, On the Mechanics of Economic Development: W.A. Mackintosh Lecture 1985,” Journal of Monetary Economics, Vol. 22 (July 1988), pp. 342.

    • Search Google Scholar
    • Export Citation
  • Maastricht Conference on Africa, Issues Paper (Maastricht, 1990).

  • Mankiw, Gregory N., David Romer, and David N. Weil, A Contribution to the Empirics of Economic Growth,” Quarterly Journal of Economics, Vol. 107 (May 1992), pp. 40737.

    • Search Google Scholar
    • Export Citation
  • Mason, Andrew, Saving, Economic Growth, and Demographic Change,” Population and Development Review, Vol. 14 (March 1988), pp. 11343.

    • Search Google Scholar
    • Export Citation
  • McColm, Bruce R., James Finn, Douglas W. Payne, Joseph E. Ryan, Leonard R. Sussman, and George Zarycky, Freedom in the World: Political Rights and Civil Liberties: 1990–1991 (New York: Freedom House, 1991).

    • Search Google Scholar
    • Export Citation
  • McKinnon, Ronald, Money and Capital in Economic Development (Washington: Brookings Institution, 1973).

  • Mosley, Paul, Overseas Aid: Its Defence and Reform (Brighton, Sussex, England: Wheatsheaf Books, 1987).

  • Nord, Roger, Michael Mered, Nisha Agrawal, and Zafar Ahmed, Structural Adjustment, Economic Performance, and Aid Dependency in Tanzania,” IMF Working Paper 93/66 (Washington: International Monetary Fund, August 1993).

    • Search Google Scholar
    • Export Citation
  • Nsouli, Saleh, Structural Adjustment in Sub-Saharan Africa,” Finance and Development, Vol. 30 (September 1993), pp. 2023.

  • Nugent, Jeffery B., and Constantine Glezakos, Phillips Curves in Developing Countries: The Latin American Case,” Economic Development and Cultural Change, Vol. 30 (January 1982), pp. 32134.

    • Search Google Scholar
    • Export Citation
  • Nunnenkamp, P., and R. Schweickert, Adjustment Policies and Economic Growth in Developing Countries—Is Devaluation Contractionary?” Weltwirtschaftliches Archiv, Vol. 126 (1990), pp. 47493.

    • Search Google Scholar
    • Export Citation
  • Obsfeld, Maurice, Aggregate Spending and the Terms of Trade: Is There a Laursen-Metzler Effect?,” Quarterly Journal of Economics, Vol. 97 (May 1982), pp. 25170.

    • Search Google Scholar
    • Export Citation
  • Oshikoya, Temitope W., Macroeconomic Determinants of Domestic Private Investment in Africa: An Empirical Analysis,” Economic Development and Cultural Change, Vol. 42 (April 1994), pp. 57396.

    • Search Google Scholar
    • Export Citation
  • Otani, Ichiro, and Delano Villanueva, Theoretical Aspects of Growth in Developing Countries: External Debt Dynamics, and the Role of Human Capital,” IMF Staff Papers, Vol. 36 (June 1989), pp. 30742.

    • Search Google Scholar
    • Export Citation
  • Ozler, Sule, and Dani Rodrik, External Shocks, Politics and Private Investment: Some Theory and Empirical Evidence,” Journal of Development Economics, Vol. 39 (July 1992), pp. 14162.

    • Search Google Scholar
    • Export Citation
  • Patel, I. G. (ed.), Policies for African Development: From the 1980s to the 1990s: Papers (Washington: International Monetary Fund, 1992).

    • Search Google Scholar
    • Export Citation
  • Persson, Torsten, and Lars E.O. Svensson, Current Account Dynamics and the Terms of Trade: Harberger-Laursen-Metzler Two Generations Later,” Journal of Political Economy, Vol. 93 (February 1985), pp. 4365.

    • Search Google Scholar
    • Export Citation
  • Ram, Rati, Dependency Rates and Aggregate Savings: A New International Cross-Section Study,” American Economic Review, Vol. 72 (June 1982), pp. 53744.

    • Search Google Scholar
    • Export Citation
  • Ram, Rati, Exports and Economic Growth in Developing Countries: Evidence from Time-Series and Cross-Section Data,” Economic Development and Cultural Change, Vol. 35 (October 1987), pp. 5172.

    • Search Google Scholar
    • Export Citation
  • Rama, Martin, Empirical Investment Equations for Developing Countries,” in Striving for Growth After Adjustment: The Role of Capital Formation, edited by Luis Serven and Andres Solimano (Washington: World Bank, 1994).

    • Search Google Scholar
    • Export Citation
  • Raut, Lakshmi K., and Arvind Virmani, Determinants of Consumption and Savings Behavior in Developing Countries,” The World Bank Economic Review, Vol. 3 (September 1989), pp. 37993.

    • Search Google Scholar
    • Export Citation
  • Reinhart, Carmen M., and Peter Wickham, Commodity Prices: Cyclical Weakness or Secular Decline?,” IMF Working Paper 94/7 (Washington: International Monetary Fund, January 1994).

    • Search Google Scholar
    • Export Citation
  • Renelt, David, Economic Growth: A Review of the Theoretical and Empirical Literature,” World Bank Working Paper WPS 678 (Washington: World Bank, May 1991).

    • Search Google Scholar
    • Export Citation
  • Romer, Paul, Increasing Returns and Long-Run Growth,” Journal of Political Economy, Vol. 94 (October 1986), pp. 10021037.

  • Romer, Paul, Endogenous Technological Change,” Journal of Political Economy, Vol. 98 (October 1990), pp. S71S103.

  • Rossi, Nicola, Government Spending, the Real Interest Rate, and the Behavior of Liquidity-Constrained Consumers in Developing Countries,” IMF Staff Papers, Vol. 35 (March 1988), pp. 10440.

    • Search Google Scholar
    • Export Citation
  • Rossi, Nicola, Dependency Rates and Private Savings Behavior in Developing Countries,” IMF Staff Papers, Vol. 36 (March 1989), pp. 16681.

    • Search Google Scholar
    • Export Citation
  • Roubini, Nouriel, and Xavier Sala-i-Martin, Financial Development, the Trade Regime, and Economic Growth,” NBER Working Paper 3876 (Cambridge, Massachusetts: National Bureau of Economic Research, October 1991).

    • Search Google Scholar
    • Export Citation
  • Roubini, Nouriel, and Xavier Sala-i-Martin, Financial Repression and Economic Growth,” Journal of Development Economics, Vol. 39 (July 1992), pp. 530.

    • Search Google Scholar
    • Export Citation
  • Sakr, Khaled, Determinants of Private Investment in Pakistan,” IMF Working Paper 93/30 (Washington: International Monetary Fund, March 1993).

    • Search Google Scholar
    • Export Citation
  • Schadler, Susan, Franek Rozwadowski, Siddharth Tiwari, and David O. Robinson, Economic Adjustment in Low-Income Countries: Experience Under the Enhanced Structural Adjustment Facility, IMF Occasional Paper No. 106 (Washington: International Monetary Fund, September 1993).

    • Search Google Scholar
    • Export Citation
  • Schmidt-Hebbel, Klaus, Steven B. Webb, and Giancarlo Corsetti, Household Saving in Developing Countries: First Cross-Country Evidence,” The World Bank Economic Review, Vol. 6 (September 1992), pp. 52947.

    • Search Google Scholar
    • Export Citation
  • Seater, John J., Ricardian Equivalence,” Journal of Economic Literature, Vol. 31 (1993), pp. 14290.

  • Serven, Luis, and Andres Solimano, Private Investment and Macroeconomic Adjustment: A Survey,” The World Bank Research Observer, Vol. 7 (January 1992), pp. 95114.

    • Search Google Scholar
    • Export Citation
  • Serven, Luis, and Andres Solimano, (eds.), Striving for Growth After Adjustment: The Role of Capital Formation (Washington: World Bank, 1994).

    • Search Google Scholar
    • Export Citation
  • Shaw, Edward, Financial Deepening in Economic Development (New York: Oxford University Press, 1973).

  • Sheehey, Edmund J., Unanticipated Inflation, Devaluation and Output in Latin America,” World Development, Vol. 14 (May 1986), pp. 66571.

    • Search Google Scholar
    • Export Citation
  • Solimano, Andres, Contractionary Devaluation in the Southern Cone: The Case of Chile,” Journal of Development Economics, Vol. 23 (September 1986), pp. 13551.

    • Search Google Scholar
    • Export Citation
  • Solimano, Andres, How Private Investment Reacts to Changing Macroeconomic Conditions: The Case of Chile,” World Bank Working Paper WPS 212 (Washington: World Bank, 1989).

    • Search Google Scholar
    • Export Citation
  • Solow, Robert M., A Contribution to the Theory of Economic Growth,” Quarterly Journal of Economics, Vol. 70 (February 1956), pp. 6594.

    • Search Google Scholar
    • Export Citation
  • Stockman, Alan C, Anticipated Inflation and the Capital Stock in a Cash-in-Advance Economy,” Journal of Monetary Economics, Vol. 8 (1981), pp. 38793.

    • Search Google Scholar
    • Export Citation
  • Sundararajan, V., and Subhash Thakur, Public Investment, Crowding Out, and Growth: A Dynamic Model Applied to India and Korea,” IMF Staff Papers, Vol. 27 (December 1980), pp. 81455.

    • Search Google Scholar
    • Export Citation
  • Svensson, Lars E.O., and Assaf Razin, The Terms of Trade and the Current Account: The Harberger-Laursen-Metzler Effect,” Journal of Political Economy, Vol. 91 (February 1983), pp. 97125.

    • Search Google Scholar
    • Export Citation
  • Swan, T.W., Economic Growth and Capital Accumulation,” The Economic Record, Vol. 32 (1956), pp. 33443.

  • Tallman, Ellis W., and Ping Wang, Human Capital Investment and Economic Growth: New Routes in Theory Address Old Questions,” Economic Review, Vol. 77 (Sept./Oct. 1982), pp. 112.

    • Search Google Scholar
    • Export Citation
  • Tun Wai, U. and Chorn-huey Wong, Determinants of Private Investment in Developing Countries,” Journal of Development Studies, Vol. 19 (October 1982), pp. 1936.

    • Search Google Scholar
    • Export Citation
  • United Nations, Economic Commission for Africa, African Alternative Framework to Structural Adjustment Programmes for Socio-Economic Recovery and Transformation, UN Doc. No. E/ECA/CM.15/6/Rev. 3 (Addis Ababa, 1989).

    • Search Google Scholar
    • Export Citation
  • United Nations Development Program, Human Development Report 1993 (New York: Oxford University Press for the UNDP, 1993).

  • van Wijnbergen, Sweder, Aid, Export Promotion and the Real Exchange Rate: An African Dilemma?” DRD Discussion Paper 199 (Washington: World Bank, 1986).

    • Search Google Scholar
    • Export Citation
  • Weisskopf, Thomas E., The Impact of Foreign Capital Inflow on Domestic Savings in Underdeveloped Countries,” Journal of International Economics, Vol. 2 (February 1972), pp. 2538.

    • Search Google Scholar
    • Export Citation
  • Wheeler, David, Sources of Stagnation in Sub-Saharan Africa,” World Development, Vol. 12 (January 1984), pp. 123.

  • White, Halbert, A Heteroscedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroscedasticity,” Econometrica, Vol. 48 (May 1980), pp. 81738.

    • Search Google Scholar
    • Export Citation
  • World Bank, World Development Report 1987 (New York: Oxford University Press, 1987).

  • World Bank, (1989a), Sub-Saharan Africa: From Crisis to Sustainable Development (Washington: World Bank, 1989).

  • World Bank, (1989b), World Development Report 1989 (New York: Oxford University Press, 1989).

  • World Bank, World Development Report 1991: The Challenge of Development (New York: Oxford University Press, 1991).

  • World Bank, The East Asian Miracle, Economic Growth and Public Policy: Summary (New York: Oxford University Press, 1993).

  • World Bank, Adjustment in Africa: Reforms, Results, and the Road Ahead (New York: Oxford University Press, 1994).