Adjustment and long-run economic performance in 18 African countries

Fiseha Gebregziabher

doi:10.1002/jid.3056

Adjustment and long-run economic performance in 18 African countries

Fiseha Gebregziabher^*

^*Corresponding author af dette arbejde

Økonomisk Institut

4 Citationer (Scopus)

Abstract

This paper investigates the link between IMF-World Bank stabilisation-cum-structural adjustment programs and long-run economic performance in 18 African countries on a country-specific basis for the period 1960-2009. We employ a structural break approach to study the impact on long-run growth trajectories of the introduction of adjustment programs. The analysis reveals that only few countries have shown positive and sustained results. The traditional (first-generation) Fund-Bank adjustment package is linked with sustained increase in Gross Domestic Product, export and investment growth rates only in two countries (Ghana and Uganda). Many African economies remained on their pre-reform growth paths whereas some others experienced growth deceleration, despite more-than-a-decade-long adjustment. Taken as a whole, countries in the CFA franc currency zone fared much worse than their non-CFA counterparts because of the different adjustment strategies pursued.

Originalsprog	Engelsk
Tidsskrift	Journal of International Development
Vol/bind	27
Udgave nummer	2
Sider (fra-til)	170-196
Antal sider	27
ISSN	0954-1748
DOI	https://doi.org/10.1002/jid.3056
Status	Udgivet - 1 mar. 2015

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Citationsformater

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AB - This paper investigates the link between IMF-World Bank stabilisation-cum-structural adjustment programs and long-run economic performance in 18 African countries on a country-specific basis for the period 1960-2009. We employ a structural break approach to study the impact on long-run growth trajectories of the introduction of adjustment programs. The analysis reveals that only few countries have shown positive and sustained results. The traditional (first-generation) Fund-Bank adjustment package is linked with sustained increase in Gross Domestic Product, export and investment growth rates only in two countries (Ghana and Uganda). Many African economies remained on their pre-reform growth paths whereas some others experienced growth deceleration, despite more-than-a-decade-long adjustment. Taken as a whole, countries in the CFA franc currency zone fared much worse than their non-CFA counterparts because of the different adjustment strategies pursued.

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Adjustment and long-run economic performance in 18 African countries

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