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South African Journal of Economic and Management Sciences

On-line version ISSN 2222-3436
Print version ISSN 1015-8812

S. Afr. j. econ. manag. sci. vol.11 n.4 Pretoria Dec. 2008




Primary commodity export and economic growth in Sub Sahara Africa: Evidence from panel data analysis



Matthew Kofi OcranI; Nicholas BiekpeII

IGhana Institute of Management and Public Administration (GIMPA) and the Department of Economics, University of Fort Hare
IIUniversity of Stellenbosch Business School




The paper sought to examine the impact of instability in primary commodity export earnings and the level of commodity dependence on economic growth in Sub Saharan Africa (SSA). Fixed effects panel data estimator was used in the empirical estimation. The findings of the study suggest that there is a negative relationship between instability in export earnings and economic growth. The results also indicate that the level of commodity dependence matter in determining economic growth in the region. The results of the paper have economic development policy implications for SSA economies and these are not farfetched. First, it appears the difficult growth experience of SSA is not solely due to instability in export receipts. The question of continued dependence on a narrow range of primary commodities is also matter of great importance.

Key words: Primary commodities dependence, export instability, economic growth, panel data analysis, Sub Saharan Africa

JEL: O13, O55, C33



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