Determinants of Non-Oil Growth in the CFA-Zone Oil Producing Countries: How Do They Differ?

Tabova, Alexandra; Baker, Carol L.

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Determinants of Non-Oil Growth in the CFA-Zone Oil Producing Countries: How Do They Differ?

IMF Working Paper No. 11/233

21 Pages Posted: 18 Oct 2011

See all articles by Alexandra Tabova

Alexandra Tabova

Board of Governors of the Federal Reserve System

Carol L. Baker

affiliation not provided to SSRN

Date Written: October 2011

Abstract

Non-oil growth in the CFA oil exporting countries has been lackluster despite their great natural resource wealth. In this paper we study the key determinants of non-oil growth and explore to what extent these countries differ from countries with comparable levels of development that do not depend on nonrenewable resources. Using a panel of 38 countries comprising LICs and CFA zone oil exporters, we find that while real exchange rate appreciation negatively impacted growth in all countries over the period 1985-2008, what distinguishes the oil producers of the CFA zone is the failure of public and private investment to spur non-oil growth.

Suggested Citation: Suggested Citation

Tabova, Alexandra and Baker, Carol L., Determinants of Non-Oil Growth in the CFA-Zone Oil Producing Countries: How Do They Differ? (October 2011). IMF Working Paper No. 11/233, Available at SSRN: https://ssrn.com/abstract=1945620