| Abstract: | Africa's macroeconomic response to external shocks was significantly differrent from that of other developing countries during 1976–1986. Nonparametric tests that correct for differing initial conditions indicate significantly lower economic growth in African economies. Average inflation was also significantly lower, while current-account deficits were larger. Economic policies in African countries are characterized by significantly larger budget deficits and government current expenditure as a share of gross domestic product and by greater inward orientation. African economies in the CFA Franc Zones are distinguished by relatively lower inflation, budget deficits, and less reduction in investment/GNP ratios. |
