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DO COMMON GLOBAL ECONOMIC FACTORS MATTER FOR AFRICA'S ECONOMIC GROWTH?
Author(s) -
BangwayoSkeete Prosper F.
Publication year - 2012
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1704
Subject(s) - economics , globalization , development economics , economic globalization , business cycle , politics , panel data , estimation , international trade , political science , macroeconomics , market economy , law , management , econometrics
Empirical research has generally attributed the dismal performance of Africa's economic growth to country‐specific socio‐economic and geo‐political factors. This paper shows that while country‐specific issues matter for Africa's economic growth, common global economic factors do matter as well. The importance of common global economic factors has been augmented by increased globalization, the introduction of the World Trade Organization and the current global economic crisis. Using system GMM panel data techniques that extend previous literature on Africa's growth, the estimation results provide new insights into the positive relationship between the world business cycle and the growth rates of African countries. Copyright © 2010 John Wiley & Sons, Ltd.