首页 | 本学科首页   官方微博 | 高级检索  
     检索      


The impact of capital goods prices on Africa's economic performance
Authors:B Ben Moummad  E Ezzahid  A Zoglat
Institution:1. Laboratory of Mathematics, Statistics and Applications, Faculty of Sciences, Mohammed V University in Rabat, Rabat, Morocco;2. Faculty of Juridical, Economic and Social Sciences, Mohammed V University in Rabat, Rabat, Morocco
Abstract:Over the last four decades, the relative price of investment goods in Africa has gone through a relatively large decrease, resulting in a steady convergence towards the levels recorded in high-income countries. This fact begs the following question: To what extent might the relative price decrease be a driving force behind the economic performance of this continent? The paper addresses this question from the perspective of a panel ARDL approach, using the Solow growth model—augmented with barriers to investment—as a framework. The results reveal that a one-unit decrease in the relative price of investment leads, in the long term, to a 4% increase in per capita GDP, an increase that could be neutralised by a 6.5 percentage points decrease in the savings rate. The findings contribute to the case for a policy mix that combines policies geared towards reducing investment distortions with those promoting savings mobilisation.
Keywords:Africa  economic growth  investment barriers  pooled mean group  Solow growth model  the relative price of investment goods
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号