A Panel Data Analysis of Economic Growth Determinants in 34 African Countries

Abstract

The research study investigated the economic determinants of economic growth in 34 countries across Africa during a two-decade period (2001–2019). For this purpose, the sample included a wide range of economies, from low income to high income and from low human development to high human development, according to recent international rankings provided by the World Bank and the United Nations Development Programme. By means of a multimodal approach centered on panel data modelling, we showed that economic growth, proxied by the GDP growth rate, was substantially influenced by economic indicators such as imports, exports, gross capital formation, and gross domestic savings. We also showed that foreign direct investment inflows and outflows play an important role for capital and savings. Our empirical results offer insights on strategies that national authorities could implement to boost economic growth and development across the African continent.

Coarse Graining on Financial Correlation Networks

“…All in all, it can be stated that the method presented in this study can serve as a strong indicator of a financial network. The method can be extended to networks that model not only financial systems but also different types of complex systems [48][49][50]. Hence, the approach from our study can serve as a starting point for research studies focused on geometrical, topological, and statistical aspects of network science [51,52].…”

Macroeconomic Factors and the Prospects of Economic Prosperity in a Developing Economy: Evidence from Dynamic ARDL Simulations and KRLS Techniques

“…Waheed and David (2021) showed using the ARDL procedure that in ation and exchange rates, capital, and tax receipts determine GDP growth for Pakistan. By applying a multimodal panel procedure for 34 African countries, Batrancea et al (2021) showed that exports, imports, gross domestic savings, and gross capital formation are crucial determinants of GDP. Another study by Batrancea et al (2022) applied a descriptive statistical analysis and observed that GDP growth in Bolivia, Estonia, Poland, Czech Republic, Malaysia, and Thailand is a function of bank capital to asset ratio.…”

“…Every nation's government aims to ensure or sustain economic prosperity at the expiration of any economic policy's lifespan. The most prominent measures used to indicate a country's wealth increases are the gross domestic product (GDP) growth rate and the GDP per capita (Petrakis, 2020;Batrancea et al, 2021). Consequently, policymakers have been fascinated with the combinations of macroeconomic indicators that can drive long-term wealth in different countries.…”

Macroeconomic Factors and the Prospects of Economic Prosperity in a Developing Economy: Evidence from Dynamic ARDL Simulations

“…Every nation's government aims to ensure or sustain economic prosperity at the expiration of any economic policy's lifespan. The most prominent measures used to indicate a country's wealth increases are the gross domestic product (GDP) growth rate and the GDP per capita (Petrakis, 2020;Batrancea et al, 2021).…”

“…">IntroductionEvery nation's government aims to ensure or sustain economic prosperity at the expiration of any economic policy's lifespan. The most prominent measures used to indicate a country's wealth increases are the gross domestic product (GDP) growth rate and the GDP per capita (Petrakis, 2020;Batrancea et al, 2021).Consequently, policymakers have been fascinated with the combinations of macroeconomic indicators that can drive long-term wealth in different countries. For many, the in ation and exchange rate level constitute crucial 'economic pulse' indicators.…”