The Effects of Exports and Foreign Capital on Economic Growth: Cases of Three African Countries

Abstract

This study focuses on the importance of exports and other explanatory variables on the economic growth of Mauritius, Kenya, and Ivory Coast using annual data from 1960 through 1990. We estimate an augmented growth function with and without integration of the Harrod-Domer growth model. The empirical results indicate that exports play a significant role in explaining the economic growth of these countries. In addition, we find that the explanatory power of this model is increased further if we use manufacturing exports in place of total exports.