The “Africa Rising”: An Empirical Analysis of the Determinants of Per-Capita Growth
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In developing economies, the race toward inclusive development has prompted researchers to reconsider the drivers of growth in view of achieving the Sustainable Development Goals (SDGs). This study explores the determinants of African growth. We have identified the drivers of growth of 54 African countries over the period 2010-2019. As a data source, the main international organisations (UN, WB, IMF) have been considered. We employ system dynamic panel estimators (GMM-sys) and fixed-effects (FE) models. The real per-capita GDP is the dependent variable. The findings indicate that in addition to the initial conditions of the per-capita GDP – found significant in all GMM-sys models – external debt, received remittance, gross fixed investments, institutional quality proxied by the governance climate, exports to the Eastern-Asia or Pacific region, and imports from the Southern-Asia region robustly drive African growth. We conclude that enhancing governance and the institutional and business environment is pivotal in fostering African growth.