Significant drivers of growth in Africa

Oleg Badunenko, Daniel J. Henderson, Romain Houssa

Research output: Contribution to journalArticle

Abstract

We employ bootstrap techniques in a production frontier framework to provide statistical inference for each component in the decomposition of labor productivity growth, which has essentially been ignored in this literature. We show that only two of the four components (efficiency changes and human capital accumulation) have significantly contributed to growth in Africa. Although physical capital accumulation is the largest force, it is not statistically significant on average. Thus, ignoring statistical significance would falsely identify physical capital accumulation as a major driver of growth in Africa when it is not.

Original languageEnglish
Pages (from-to)339-354
Number of pages16
JournalJournal of Productivity Analysis
Volume42
Issue number3
DOIs
Publication statusPublished - 24 Oct 2014

Keywords

  • Africa
  • Bootstrap
  • Growth
  • Production frontier

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