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Diversification in Africa in a macroeconomic perspective

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  • Galy, Michel

Abstract

This paper contrasts the poor performance of African economies over the past 30 years with the remarkable development of East Asian newly industrialized countries. It provides evidence that the lack of diversification, stemming from the adoption of inward-looking strategies, interventionist policies, and the absence of a competitive environment, is at the root of the lagging development of African countries. Sound macroeconomic policies and structural reforms to foster capital and labor mobility, as well as trade liberalization are a prerequisite to enhance the economic growth potential of African countries.

Suggested Citation

  • Galy, Michel, 1995. "Diversification in Africa in a macroeconomic perspective," MPRA Paper 62309, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:62309
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    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
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    5. A. Derosa, 1992. "Increasing Export Diversification in Commodity Exporting Countries: A Theoretical Analysis," IMF Staff Papers, Palgrave Macmillan, vol. 39(3), pages 572-595, September.
    6. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    African economies; Diversification; International trade; Comparative advantage; Trade specialization; Terms of Trade; Endogenous growth; Macroeconomic policies; Structural reforms;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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