Why has Africa grown slowly?
Africa saw a rise in economic growth rates from 1960 to 1973, and political self-determination appeared to foster economic development. This changed at autocracies emerged in Africa, and African growth rates started to diverge from those of south Asia. There was a drop in aggregate gross domestic product per capita for African countries south of the Sahara after 1980, followed by an improvement during the 1990s, with performance becoming more dispersed. The decline and improvement could be related to how far Africa has been open to foreign trade, and greater openness could bring a sustained improvement. Another, more pessimistic view is that problems such as languages, tropical diseases, and long distances have hampered African growth, and such problems are more difficult to solve.
Publication Name: Journal of Economic Perspectives
Comment and discussion
What is interesting in the study of Barry Bosworth and Susan Collins is the lack of correlation between various types of capital inflows. This finding suggests that all capital flows are created equal. Both also recognize the role of demographics in their research but ignore as a variable because they believe that dependency rates vary little over time. The implications of their study on capital inflows for savings and investment depend primarily on the nature of the inflow.
Publication Name: Brookings Papers on Economic Activity