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The paper empirically analyzes the financial development (FD)-growth nexus, and the financial development-total factor productivity (TFP) link in sub-Saharan Africa. The study is based on a VAR approach: Johansen cointegration tests and error correction models. The sample includes 22 countries over the period from 1960 to 2002. Results suggest that FD and economic growth and, FD and TFP are cointegrated for many countries. Moreover, in many cases, the relationship between FD and growth is characterized by bidirectional causality in the Granger sense, whereas the relation between FD and TFP is characterized by a unidirectional causality running from FD to TFP. With few exceptions, it appears that financial development spurs economic growth in countries where that growth is supported by technological progress. The implication of the findings is that any reform that causes betterment in the financial sector will foster economic growth through a sharp increase in technological progress. [ABSTRACT FROM AUTHOR]

Résumé: Alors qu'après une longue période de stagnation la croissance semble être revenue en Afrique, la question se pose de savoir si la nouvelle croissance africaine est durable. Cet article examine dans quelle mesure la croissance africaine est vulnérable aux chocs exogènes et quelles en sont les implications pour le financement internatìonal du développement. It montre en premier lieu la persistance de la vulnérabilité des économies africaines au regard de l'indice de vulnérabilitééconomique des Nations unies (EVI), utilisant une première série rétrospective de cet indice. En second lieu, s'appuyant sur divers travaux récents, il souligne l'importance de la vulnérabilité structurelle pour la croissance et le développement, particullèrement en Afrique. Enfin il examine le rôle du financement international pour réspondre à la vulnérabilité des économies africaines, suggérant de faire de la vulnérabilité structurelle un des critères d'allocation de l'aide de d'adapter les modailités de l'aide pour lui faire jouer de façon efficace un rôle d'assurance. While after a long stagnation growth seems to have come back in Africa, the issue remains to know whether the new African growth is sustainable. This paper examines to what extent African growth is vulnerable to exogeneous shocks and what are the implications for international developement finance. First it evidences the persistent vulnerability of African economies with regard to the U.N. Economic Vulnerability Index (EVI), using a first retrospective series of that index. Second, relying on several recent works, it unerlines that structural vulnerability matters, in particular in Africa. Finally it considers how international development finance can be used to face the vulnerability of African economies, suggesting to use structural vulnerability as one of the aid allocation criteria and to adopt modalities of aid so that it can effectively serve as an insurance. [ABSTRACT FROM AUTHOR]

The cereal market of Togo was liberalized in 1987. This policy aims to improve markets' spatial integration through the development of arbitrage. The paper assesses the extent of maize market spatial integration in order to understand how it has been affected by price liberalization. The monthly retail maize prices collected on 13 markets for the period from 1980 to 2001 are considered. The results show that the impact of price liberalization on markets integration is moderate. The liberalization has not significantly improved the extent of long-run and short-run integration of maize markets. The speed of price adjustment is relatively weak for most of the markets. In order to improve market efficiency, it is suggested that the government should create a market information service (SIM) which will be entrusted in collecting and disseminating weekly cereal prices all over the country. [ABSTRACT FROM AUTHOR]

The objectives of the present paper were to determine how the fiscal balance, the level of employment and the economic growth evolved overtime in Côte d’Ivoire and to determine the direction of causality in the Granger sense between the fiscal balance, employment and growth. The data used for the study cover the period from 1976 to 2002. The empirical results suggest high positive correlation between the FDI, employment and GDP variables. A positive but weak correlation is found between the fiscal balance and growth. There is no cointegration relation between growth and the fiscal balance as well as between this later variable and the employment variable. With respect to causality, the results suggest a unidirectional causality from the fiscal balance towards growth. These results call for caution in the implementation of economic policies that focus too much on the fiscal balance to pull growth. [ABSTRACT FROM AUTHOR]

The objective of the present paper was to investigate Granger causality between export expansion and economic growth and draw implications for sustainable job creation strategies. Several statistical tests were undertaken (unit root, cointegration and Granger causality). The results suggest that despite the absence of cointegration between export and economic growth, there is a feedback relationship between export and economic growth. Moreover, the results also indicate no cointegration between the labour variable and export, public expenditures and economic growth variables. [ABSTRACT FROM AUTHOR]