Examining the Robustness of Competing Explanations of Slow Growth in African Countries
Stellenbosch Working Paper Series No. WP03/2006
Author(s): Stan du Plessis, Ronelle Burger
JEL Classification: C110, O110, O400
Keywords: Growth, Africa, model specification, robustness
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This research challenges previous findings regarding the robustness of the African growth dummy by expanding the list of variables to include those suggested by Easterly and Levine (1998) and Sachs and Warner (1997b). Using the Bayesing Averaging of Classical Estimates Approach, this paper concludes that the African growth dummy does not appear to be robustly related to growth. This supports the interpretation that the presence of the African dummy in other studies results from misspecification. This paper also contributes to the debate on growth strategies for Africa by assessing the robustness of divergent perspectives offered in the recent literature.