En Modell, Två Världar : En Jämförande Analys av Ekonomisk Tillväxt i Kina och Subsahariska Afrika

In recent decades, Africa has experienced accelerated economic growth dominating the list over the top 20 fastest-growing economies worldwide. Also, China has experienced rapid and sustained economic growth, transforming into one of the world’s largest economies. Therefore, the economic growth of Africa is aimed to be compared to the economic growth of China. This is evaluated with the problem statement; what factors have driven China’s economic growth between 1970 and 2023, and can this growth model be applied to Africa’s economic growth between 1980 and 2023? To address this, we are analysing some determinants of GDP growth in China and Sub-Saharan Africa using Ordinary Least Square (OLS), Feasible Generalized Least Square (FGLS), and Two-Stage Least Square (2SLS) regressions. The Chinese dataset is structured as a time series, while the Sub-Saharan African dataset is organised as panel data taking within country effects into account by using fixed effects. Additionally, a third model is introduced containing GDP-weighted averages of the determinants of economic growth in Sub-Saharan Africa. Among all variables, only Inflation (GDP deflator) is statistically significant in both regions, however with opposite effects within the regions. Furthermore, the model fit capture by R-squared values indicates the validity of both the OLS and 2SLS models over China and GDP-weighted Sub-Saharan Africa. However, when measuring the within-country effects of the panel data over Sub-Saharan Africa, the 2SLS model is more appropriate. Additionally, the panel data over Sub-Saharan Africa is not directly comparable to China but does however add valuable information on within-country effects.