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

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Periodical article

Title:	The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-Off: Empirical Evidence from African Growth Episodes
Authors:	Berthélemy, Jean-Claude Söderling, Ludvig
Year:	2001
Periodical:	World Development
Volume:	29
Issue:	2
Period:	February
Pages:	323-343
Language:	English
Geographic term:	Africa
Subjects:	capital formation economic development economic policy Development and Technology Economics and Trade Labor and Employment
External link:	https://doi.org/10.1016/S0305-750X(00)00095-4
Abstract:	The authors analyse extended periods of economic growth in Africa based on panel estimations from 27 African countries during 1960-1996. The objective is two-fold: to explain why growth ended in some cases and to assess the sustainability of the current periods of growth. Both objectives are pursued in a context of determining the role of capital accumulation versus total factor productivity (TFP) gains in the growth process. The 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 TFP, the authors construct a measure for the effect of labour reallocation as well as an index of economic diversification, and estimate the impact of the latter on long-term growth. Further they propose a framework for the analysis of extended growth periods, in view of assessing their sustainability. App., bibliogr., notes, ref., sum.