Mauritius: The Drivers of Growth – Can the Past Be Extended?
Journal Title: Journal of Banking and Financial Economics - Year 2017, Vol 2, Issue 8
Abstract
Mauritius’s economic performance since its independence has been called “the Mauritian miracle” and the “success of Africa” (Romer, 1992; Frankel, 2010; Stiglitz, 2011). However, the future growth potential is more uncertain. In this paper, we use growth accounting to analyze the sources of past growth and project potential ranges of future growth through 2033 under various policies. Growth averaged 4½ percent over the past 20 years. Our baseline suggests future growth rates around 3¼ percent, but growth could reach 4–5 percent with strong pro-active policies including (i) improving investment and savings rates; (ii) improving the efficiency of social spending and public enterprise reforms; (iii) investment in education and education reforms; (iii) labor market reforms; and (iv) further measures to reduce bottlenecks and increase productivity. With policies capable of generating 5 percent growth, Mauritius could reach high-income status in 2021, 4 years earlier than under the baseline.
Authors and Affiliations
Katsiaryna Svirydzenka, Martin Petri
Keywords
Related Articles
- EP ID EP298733
- DOI 10.7172/2353-6845.jbfe.2017.2.3
- Views 84
- Downloads 0
Unstash the Cash! Corporate Governance Reform in Japan
Japan’s high corporate savings might be holding back growth, by preventing a more effi cient use of resources. Small and medium enterprises (SMEs) have been the main contributors to high corporate cash balances, but more...
Gravity Chains: Estimating bilateral trade flows when parts and components trade is important
Trade is measured on a gross sales basis while GDP is measured on a net sales basis, i.e. value added. The rapid internationalisation of production in the last two decades has meant that gross trade flows are increasingl...
Deep Roots of Fiscal Behavior
This paper investigates the determinants of fiscal policy behavior and its time-varying volatility, using panel data for a broad set of advanced and emerging market economies during the period 1990–2012. The empirical re...
Determinants of banks’ profitability and efficiency: Empirical evidence from a sample of Banking Systems
The aim of this study is to analyze the determinants of the bank profitability and efficiency in conventional banks. This study compares accounting-based and economic-based measures of efficiency and profitability of con...
Foreign Investor Flows and Sovereign Bond Yields in Advanced Economies
Asset allocation decisions of international investors are at the core of capital fl ows. This paper explores the impact of these decisions on long-term government bond yields, using a quarterly investor base dataset for...