This study examines the proximate causes of economic growth in Africa’s economies since 2000 by combining a growth accounting framework with clustering analysis. We first provide evidence that Africa’s growth is unlikely to be an artifact of measurement error, as many countries saw considerable poverty reduction and improvements in other real measures of living standards. We then argue that Africa’s growth experiences can be usefully grouped into six distinct clusters that share common growth rates of physical capital per worker, human capital per worker, employment rates, and total-factor productivity. Around half of Africa’s countries grew largely from physical capital accumulation, as in the Solow model, with the rest falling into clusters with more distinct proximate causes. The clusters project differently onto changes in commodity prices, rates of conflict, democracy, and foreign assistance, highlighting the diverse roots of Africa’s growth miracles.
STEG Working Paper Series
• Research Theme 0: Data, Measurement, and Conceptual Framing,
Research Theme 5: The Role of the Public Sector,
Cross-Cutting Issue 3: Inequality and Inclusion
Africa’s Growth Miracles
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