SOAS Research Online

Abstract

This thesis analyses the growth performance of Sub-Saharan African countries and the factors that appear to be most significant in the growth process. Regression analysis is the main research method employed. Data limitations restrict the sample to thirty-two countries, over the period 1960- 86, and the empirical study consists of fifteen factors. There are three main groups of equations : the growth rate, the investment ratio, and the incremental capital-output ratio (ICOR). The main conclusions were that the most significant influences on economic growth are the investment ratio, export and import growth, and political instability. The main influences on the investment (saving) ratio were found to be per capita income levels, government consumption, and political instability. The most significant effect on the ICOR appeared to be the degree of market distortions, as proxied by the ratio of the black market to the official exchange rates.