Determinants of Non-oil Growth in the CFA-Zone Oil Producing Countries
Author | : Ms.Alexandra Tabova |
Publisher | : International Monetary Fund |
Total Pages | : 22 |
Release | : 2011-10-01 |
ISBN-10 | : 9781463921996 |
ISBN-13 | : 1463921993 |
Rating | : 4/5 (96 Downloads) |
Book excerpt: Non-oil growth in the CFA oil exporting countries has been lackluster despite their great natural resource wealth. In this paper we study the key determinants of non-oil growth and explore to what extent these countries differ from countries with comparable levels of development that do not depend on nonrenewable resources. Using a panel of 38 countries comprising LICs and CFA zone oil exporters, we find that while real exchange rate appreciation negatively impacted growth in all countries over the period 1985-2008, what distinguishes the oil producers of the CFA zone is the failure of public and private investment to spur non-oil growth.