Political Institutions and Productivity Growth in Africa’s “Renaissance”

Abstract:

People speak of an “African renaissance.” We report and explore data that suggest that the continent’s return to positive growth can near entirely be explained by changes in total factor productivity growth. We find as well that changes in Africa’s political institutions played a major role in this transition and that the channel linking institutional change to changes in economic performance runs in significant part through changes in policy choices. We conclude with reasons to be cautious in assessments of the depth and durability of the changes in Africa’s economies.

Last updated on 06/10/2014