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Endogenous constraints, coefficients of economic distance, and economic performance of African countries – An exploratory essay

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  • Amavilah, Voxi Heinrich
Abstract
Existing literature has overstressed the importance of exogenous constraints in the economic performance of African countries at the expense of endogenous constraints, although the latter are longer-lasting and more self-propagating than the former. In this exploratory essay I put endogenous factors upfront, and introduce and define the concept of economic distance. I argue that the coefficient of economic distance is a better measure of what is going on than things like the Africa dummy, for example. The evidence I consider suggests that policy and future research will benefit from focused studies of endogenous constraints on economic performance. The essay is incomplete without its empirical complement, but it succeeds in holding up a mirror in front of these countries. The implication is that continued emphasis on exogenous constraints is a misallocation of scarce policy and research resources.

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  • Amavilah, Voxi Heinrich, 2018. "Endogenous constraints, coefficients of economic distance, and economic performance of African countries – An exploratory essay," MPRA Paper 90065, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:90065
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    More about this item

    Keywords

    Endogenous constraints; Economic distance; coefficient of economic distance; endogenous growth; developing countries; African countries;
    All these keywords.

    JEL classification:

    • C19 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Other
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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