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

Fingerprint

capital accumulation
driver
labor productivity
statistical significance
human capital
efficiency
Physical capital
Capital accumulation
Africa
Statistical significance
Decomposition
Production frontier
Human capital accumulation
Statistical inference
Labour productivity
Bootstrap
Productivity growth
Efficiency change

Keywords

  • Africa
  • Bootstrap
  • Growth
  • Production frontier

Cite this

Badunenko, Oleg ; Henderson, Daniel J. ; Houssa, Romain. / Significant drivers of growth in Africa. In: Journal of Productivity Analysis. 2014 ; Vol. 42, No. 3. pp. 339-354.
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Significant drivers of growth in Africa. / Badunenko, Oleg; Henderson, Daniel J.; Houssa, Romain.

In: Journal of Productivity Analysis, Vol. 42, No. 3, 24.10.2014, p. 339-354.

Research output: Contribution to journalArticle

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