Factor productivity nexus economic growth in Sub-Saharan Africa: Symmetric and asymmetric panel approaches
This study examines the effect and role of total factor productivity with other major determinants on economic growth in the Sub – Saharan Africa(SSA).It employs the data obtained from the World Bank Development Indicators spanning from 1990 to 2022 using panel ARDL, GMM and their extended asymmetri...
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| Format: | Article |
| Language: | English |
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Elsevier
2024-12-01
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| Series: | World Development Sustainability |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2772655X24000478 |
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| Summary: | This study examines the effect and role of total factor productivity with other major determinants on economic growth in the Sub – Saharan Africa(SSA).It employs the data obtained from the World Bank Development Indicators spanning from 1990 to 2022 using panel ARDL, GMM and their extended asymmetric non-linear (NARDL) and (NGMM) models. The NARDL and NGMM are more superior to the counterpart ARDL and GMM symmetric models in the long-run than the short-run estimation, ensuring more efficient and reliable information regarding the effects of productivity on economic growth analysis. Finally, the robust dynamic inter-temporal Granger causality tests show that asymmetrically there is bi-directional causality between the growth rate of an upward movement in total factor productivity and real GDP. There is also bi-directional causality of a downward movement in the growth rate of the terms of trade and real GDP growth rate. The empirical findings of the study are extremely important indicators for sustained economic growth in the SSA region. Hence, this research work recommends that governments should enhance total factor productivity and terms of trade through job-trainning provision and promote trading among themselves as policy tools. |
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| ISSN: | 2772-655X |