Work detail

A Panel Data Analysis of Sub-Saharan Africa´s Economic Growth

Author: Bc. Jakub Hostačný
Year: 2015 - summer
Leaders: doc. Ing. Tomáš Cahlík CSc.
Work type: Bachelors
Language: English
Pages: 135
Awards and prizes:
Abstract: This thesis examines the relationship between real GDP per capita growth rate of Sub-Saharan
Africa countries and various variables suggested by theoretical literature related to Solow
model or endogenous growth theories. The set of most commonly used variables is further
extended by additional variables which have not been given an ample attention in the context
of analysis of SSA countries’ economic growth so far. The econometric analysis uses
unbalanced panel data set comprising annual observations on 45 SSA countries between 1980
and 2011 applying a simple pooled OLS and FE estimation. We also touch IV estimation to
address endogeneity problem. Moreover, we test the sensitivity of parameter estimates. Along
with the analysis of total set of SSA countries, we subgroup countries into 4 groups – oil
exporters, middle-income countries, non-fragile low-income countries and fragile countries.
We present results for each group. The results support the findings of earlier empirical studies
related to most commonly variables associated with economic growth, except the negative
effect of population growth rate and conditional convergence hypothesis. The analysis of
additional factors reveals the strong relevance of latitude, colonial heritage and landlockedness,
while no systematic effect of neither proportion of economically active people in agriculture
nor initial population density is indicated. The significance of other variables depends on the
model specification.




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