To what extent is the growth performance of a country directly related to the Kaldor's Growth Laws? A study of Africa
By
ACKNOWLEDGEMENT
No words can express my appreciation and gratitude to my research advisor _______ through the course of this research, Professor _____has taught me numerous values that extend well beyond the realm of _________ (Your Subject Name). His emphasis on dedication to work and his valuable and practical insights of life are some of the major highlights of my education at The University _________.
ABSTRACT
This dissertation had an aim to analyze and test the applicability of Kaldor's Laws in Africa. Kaldor had presented three laws for economic growth and development and had related the economic development of a country with the manufacturing sector of that country. Africa is a very large continent in terms of both land mass and population, which makes it of great importance to the world. The many countries part of the continent are all somehow dependent upon or contributing to the world's GDP. Despite recent political reforms, the government of South Africa is faced with several economic challenges. The government has attempted to stabilize its increasing debt and reverse the double digit-inflation inherited from the apartheid regime. The researcher had taken data of forty-five African countries from the African development bank and had applied different statistical test to get empirical results. The results of this dissertation had shown that all of the laws of Kaldor are applicable in Africa. Therefore, it can be said that Africa can boot its economic growth through manufacturing sector.
Table of Contents
AcknowledgementII
AbstractIII
CHAPTER 1 INTRODUCTION1
History of Africa1
Purpose of the study3
Statement of Problem3
Research Aims and Objectives3
Research question4
Hypothesis4
CHAPTER 2 THE AFRICAN ECONOMY5
Democracy and Development8
Summary10
CHAPTER 3 MANUFACTURING11
The role of manufacturing in economic growth11
Manufacturing in Africa12
Economic growth in colonial era12
Economic growth in post-colonial era14
Comparison between pre an d post colonial growth era15
Economic growth in Africa in the twentieth century18
Manufacturing' role in boosting economy20
Challenges in economic growth in Africa24
Summary28
CHAPTER 4 KALDOR'S GROWTH LAWS29
Kaldor's first law29
The relationship between manufacturing and growth29
Kaldor's second law30
Kaldor's third law31
Summary31
CHAPTER 5 LITERATURE REVIEW32
Review of empirical work on growth in Africa32
Review of growth laws36
An overview and critique Solow's growth model38
Major assumptions of the Solow Model47
Implications of the Solow Model48
Implications of Kaldor Model48
Comparison between Solow Swan Growth Model and Kaldor Model49
Review of Kaldor's growth laws50
Summary51
CHAPTER 6 METHODOLOGY52
Range and type of data52
Method used and why52
Regression52
Measures of Association53
Least squares estimation54
Method used to collect data and analysis54
Summary56
CHAPTER 7 TESTING THE KALDOR LAWS57
Test of the first law of growth of Kaldor in African setting57
Test of the second law of growth of Kaldor (Verdoorn law) in African setting62
Test of the third law of Kaldor in Africa65
Summary67
CHAPTER 8 FINDING68
Manufacturing and GDP growth68
Agriculture and GDP growth69
Services and GDP growth70
Industry and GDP growth71
Productivity and GDP growth72
Service productivity and GDP growth73
Labour and GDP growth74
Overall manufacturing growth rate75
African countries GDP growth rate76
Summary77
CHAPTER 9 HYPOTHESIS78
Kaldor's first law: The relationship between manufacturing and growth78
Kaldor's second law: Output in labour and manufacturing sector output78