[The Growth Performance of a Country is Directly Related to the Kaldor's Growth Laws: A Study of Africa]

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ABSTRACT

This paper identifies the relationship among the structural characteristics & the economic growth performance in African countries. This thesis also examines whether the industrial growth in Africa impacting its real GDP. In this paper, Kaldor's three growth laws were tested: The increase in the real GDP of African countries are directly proportional to the production aspects of manufacturing activity. The second law to be tested is the direct relationship among the growth of labour productivity and the manufacturing growth in African countries. The third aspect of the law states that when there is an increase in the labour productivity growth in the African economy, the growth rate of employment in the non-manufacturing sector of African countries will decrease. It has been noticed that the modification in the structural framework in the industrial sector assist real GDP of African countries to grow.

TABLE OF CONTENT

ABSTRACTii

CHAPTER 1: INTRODUCTION4

CHAPTER 2: AFRICAN HISTORY AND ECONOMIC GROWTH6

Economic And Political History8

Changes In The Economies Gdp Contributions To The World GDP11

Policies And Their Implications12

Root Causes Of Under Underdevelopment12

Challenges And Constrains13

Africa's Growth Was Widespread Across Sectors14

Growth Engines Of Africa15

Conclusion16

CHAPTER 3: KALDOR'S GROWTH LAWS17

First law17

The relationship between manufacturing and growth17

Second law18

Implication Of Second Law18

Third law19

Comment On Kaldor Law19

The Relationship Between Manufacturing And Growth In Africa20

Conclusion22

CHAPTER 4: METHODOLOGY23

Research Strategy23

Range And Type Of Data24

Method Used For Data Collection And Analysis26

Constrains And Problems26

Conlusion27

CHAPTER 5: KALDOR'S GROWTH LAWS AND ECONOMIC GROWTH IN AFRICA28

Different Engines In Africa28

Value Of Manufacturing In Different Countries29

Relationship Between Manufacturing And GDP30

TestingThe Importance Of All Enginnes31

Findings31

CHAPTER 6: HYPOTHESIS IS MANUFACTURING THE ENGINE OF GROWTH33

Findings33

Future33

Conclusion34

REFERENCES36

CHAPTER 1: INTRODUCTION

The history of Kaldor's laws dating back to the debates on the consequences of static and dynamic increasing returns and the role of demand determining actual trajectory of long-term growth of economy. This paper identifies the relation between the Kaldor's growth laws with the Africa economical groath performance. We could say that the work Kaldor published after 1966 are a kind of reversal of the method. First, rule out the method Balance as irrelevant, because economic development is primarily a process of imbalance. Second, the approach complements the supply of demand, and makes this an essential force in determining the rate of economic growth in the short and long term. Finally, choose a qualitative rather than quantitative analysis, since it favors the wording of laws empirical and seeks endogenous explanations of the stylized facts bicausales, relegating the determination of the values ??of the variables to a secondary position.

From this analytical perspective, the important thing is to identify mechanisms transmission in the processes of structural change in capitalist economies. The explanation of development and the emergence and persistence of growth poles and stagnation required to set aside one sector models, and use patterns multisectoral study the interrelationships between sectors yields decreasing (agriculture) and increasing returns (industry).

Kaldor (1970 and 1981) thoroughly examined the implications of the principle of causation circular cumulative and increasing returns in regional development and the international ...