Cover IMF Policy Discussion Papers
Africa: Is This the Turning Point?
Author: Mr. Mohsin S. Khan, Mr. Stanley Fischer, and Mr. Ernesto Hernández-Catá
Series:
IMF Policy Discussion Papers
Volume/Issue:
Volume 1998: Issue 006
Language:
English
Publication Date:
01 May 1998
DOI:
https://doi.org/10.5089/9781451972061.003
ISBN:
9781451972061
ISSN:
1564-5193
Pages:
26
Keywords:
PDP; SSA country; country; SSA countries globalization; GDP; Sub-Saharan Africa; Africa; growth; structural reforms; government investment ratio; SSA Excl.; SSA performer; SSA's partner; GDP ratio; aggregate current account deficit; Private investment; Infrastructure; Domestic savings; Western Hemisphere; Asia and Pacific
Legal-disclaimer:
This Policy Discussion Paper should not be reported as representing the views of the IMF. The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Policy Discussion Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
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This paper examines the experience of Sub-Saharan Africa (SSA) to answer the question of whether the region is at a turning point in its economic fortunes. The improvement in growth reflects in part a rise in the utilization of existing capacity. To be sustained, however, a high rate of growth will require an increase in investment rates and/or an increase in total factor productivity—i.e., an improvement in the technological, political, administrative and economic factors that raise the rate of return on both capital and labor. The close link between investment and growth in developing countries over the long term is evident in the empirical growth literature. For developing countries in general, the elasticity of growth with respect to the investment/GDP ratio has been found to lie within the range of 0.3–0.5. Although increasing investment is crucial, action is also needed in many complementary areas in order to raise productivity and growth.
Cover IMF Policy Discussion Papers
IMF Policy Discussion Papers
ISSN:
1564-5193
Publisher:
International Monetary Fund