EXPORTS AND ECONOMIC-GROWTH - THE AFRICAN CASE

Previous studies have found that export growth favorably affects the rate of economic growth in less developed countries (LDCs). This paper examines the extent to which this hypothesis holds true for African countries as a subgroup, especially since export contents and transmission mechanisms may differ between African and other LDCs. GDP growth of 28 African LDCs is analyzed using a pooled cross-sectional cum time-series estimation of 1960-1970 and 1970-1980 average annual growth rates. Based upon the usual augmented production function specification that includes labor, capital formation, and exports, export growth is observed to exert a positive and significant impact on economic growth. While this export effect is somewhat smaller than that for non-African LDCs, the difference is not statistically significant. © 1990.