Growth and convergence in Africa: The impact of spatial effects

The aim of this paper is to study the impact of spatial effects on convergence process in Africa over the period 1975-2000. Taking into account these effects through the methodology of Exploratory Spatial Data Analysis (ESDA) and spatial econometrics, we focus on the geographical dimension of economic convergence of African countries. This allows us to deal with spatial autocorrelation which is a consequence of econometric interdependences due to geographic spillovers. Indeed, countries economic performance hides specific geographical patterns providing information on the importance of location on economic dynamics. Our results prove the existence of convergence process in Africa through a model with spatially autocorrelated error. It is also clear from this analysis that the countries of East African Community (EAC) form the main convergence club which significantly influences the overall pattern of spatial autocorrelation.geographic spillovers, convergence clubs, African subregions, spatial econometrics

Croissance et convergence économique en Afrique : L’impact des effets spatiaux

The aim of this paper is to study the impact of spatial effects on convergence process in Africa over the period 1975-2000. Taking into account these effects through the methodology of Exploratory Spatial Data Analysis (ESDA) and spatial econometrics, we focus on the geographical dimension of economic convergence of African countries. This allows us to deal with spatial autocorrelation which is a consequence of econometric interdependences due to geographic spillovers. Indeed, countries economic performance hides specific geographical patterns providing information on the importance of location on economic dynamics. Our results prove the existence of convergence process in Africa through a model with spatially autocorrelated error. It is also clear from this analysis that the countries of East African Community (EAC) form the main convergence club which significantly influences the overall pattern of spatial autocorrelation

Exploring the finance-real economy link in U.S.: Empirical evidence from Panel Unit Root and Cointegration Analysis

The aim of this paper is to analyze the relationships between common shocks affecting the real economy and those underlying co-fluctuations in U.S. financial markets. In order to do this, we test for links between these common factors and also use the econometric theory of nonstationary panel data to estimate the relationships. The estimates prove the existence of significant relationships between financial and macroeconomic factors. It is also shown that there are forces pulling U.S. financial markets to move with the real economy, as seen through nearly instantaneous adjustment to a new equilibrium.PANIC analysis; Panel Data; Common factors; Financial Crises; U.S

Convergence test in the presence of structural changes: an empirical procedure based on panel data with cross-sectional dependence

This paper presents an essay on empirical testing procedure for economic convergence. Referring to the unit root test proposed by Moon and Perron (2004), we proposed a modified Evans (1996)testing procedure of the convergence hypothesis. The advantage of this modified procedure is that it makes possible to take into account cross-sectional dependences that affect GDP per capita. It also allows to take into account structural instabilities in these aggregates. The application of the procedure on OECD member countries and CFA zone member countries leads to accept the hypothesis of economic convergence for these two groups of countries, and it shows that the convergence rate is significantly lower in the OECD sample. However, the results of the tests applied to the Global sample composed by all countries in these two samples conclude a rejection of the convergence hypothesis.β-convergence; Unit root; Panel data; Factor model; Cross-sectional dependence; Structural change

Croissance et convergence économique en Afrique : L’impact des effets spatiaux

The aim of this paper is to study the impact of spatial effects on convergence process in Africa over the period 1975-2000. Taking into account these effects through the methodology of Exploratory Spatial Data Analysis (ESDA) and spatial econometrics, we focus on the geographical dimension of economic convergence of African countries. This allows us to deal with spatial autocorrelation which is a consequence of econometric interdependences due to geographic spillovers. Indeed, countries economic performance hides specific geographical patterns providing information on the importance of location on economic dynamics. Our results prove the existence of convergence process in Africa through a model with spatially autocorrelated error. It is also clear from this analysis that the countries of East African Community (EAC) form the main convergence club which significantly influences the overall pattern of spatial autocorrelation

Exploring the finance-real economy link in U.S.: Empirical evidence from Panel Unit Root and Co-integration Analysis

The aim of this paper is to analyze the relationships between common shocks affecting the real economy and those underlying co-fluctuations in U.S. financial markets. In order to do this, we test for links between these common factors and also use the econometric theory of non-stationary panel data to estimate the relationships. The estimates prove the existence of significant relationships between financial and macroeconomic factors. It is also shown that there are forces pulling U.S. financial markets to move.Panic analysis;Panel Data;Common factors;Financial Crises;U.S

Convergence test in the presence of structural changes: an empirical procedure based on panel data with cross-sectional dependence

This paper presents an essay on empirical testing procedure for economic convergence. Referring to the unit root test proposed by Moon and Perron (2004), we proposed a modified Evans (1996) testing procedure of the convergence hypothesis. The advantage of this modified procedure is that it makes possible to take into account cross-sectional dependences that affect GDP per capita. It also allows to take into account structural instabilities in these aggregates. The application of the procedure on OECD member countries and CFA zone member countries leads to accept the hypothesis of economic convergence for these two groups of countries, and it shows that the convergence rate is significantly lower in the OECD sample. However, the results of the tests applied to the Global sample composed by all countries in these two samples conclude a rejection of the convergence hypothesis.beta-convergence;Unit root;Panel data;Factor model;Cross-sectional dependence;Structural change

Contrainte de crédit et convergence vers la frontière technologique: Qu'en est-il des pays de la Zone CFA ?

Cet article a pour objectif d'étudier les effets de l'imperfection du marché du crédit sur la convergence des pays de la zone CFA vers la frontière de croissance mondiale. Afin de mettre l'accent sur le fait qu'un marché du crédit moins performant constitue une contrainte qui empêche ces pays de profiter pleinement du transfert de technologie et les pousse à s'écarter de la frontière de croissance, nous avons utilisé un modèle de croissance Schumpetérien avec transfert de technologie tel que développé par Aghion et al (2005). L'analyse empirique basée sur l'approche « System GMM » en panel dynamique révèle que les pays de la Zone CFA ayant un niveau de crédit privé inferieur à 8% du PIB divergent de la frontière de croissance représentée par la France. Par ailleurs, lorsque l'on considère les Etats-Unis comme le pays définissant la frontière de croissance, on constate qu'un bas niveau de développement financier peut ralentir considérablement la vitesse de convergence, mais n'empêche cependant pas ces pays de converger.

On International Spillovers

This study investigates the role of international spillovers in generating productivity gains for a panel of 24 OECD countries during the period between 1971 and 2004. We use recent techniques developed in a common factor framework to characterize the global interdependence implied by international spillovers and the diffusion mechanisms involved. Consistently with some recent studies in this field, the evidence suggests that there are substantial cross-country spillovers mainly related to R&D and human capital variables, which contribute significantly to productivity

FINANCEMENT DES DEFICITS BUDGETAIRES PAR EMPRUNT ET LEURS EFFETS SUR LA SPHERE REELLE DES ECONOMIES DE LA CEDEAO

The main of this paper is to study the room for maneuver of ECOWAS States in terms of fiscal policy under external debt in the face of persistent budgetary imbalances. It seeks to assess the macroeconomic effects of budget deficits conditioned by external debt over the 2000-2016 period. To do this, we propose a simple threshold effects model with fixed effects relating the budget deficit (conditioned by the external debt ratio) and real GDP growth. The model does not reject the hypothesis of a Keynesian effect of deficits on real GDP growth up to an external debt ratio of 65.42% of GDP. Beyond this rate, there is a strong and positive marginal effect of the anti-Keynesian type as defined by Perotti (1999). At this optimal rate, we realize that over the study period considered, only The Gambia and Ghana which exceeded this rate with an average rate of external debt on GDP of 79.18% of GDP for The Gambia and 80, 52% GDP for Ghana