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Easterly and Devine Dataset

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Easterly and Levine Dataset

Summary: Easterly and Levine Data set quantifies the relationship between long-run growth and a wider array of factors, contains 11 variables. The data covers Sub-Sahara Africa countries.

Main Points: Easterly and Levine use one methodology - cross-country regressions - to account for Sub-Saharan Africa's growth performance over the past 30 years and to suggest policies to promote growth over the next 30 years.

They statistically quantify the relationship between long-run growth and a wider array of factors than any previous study. They consider such standard variables as initial income to capture convergence effects, schooling, political stability, and indicators of monetary, fiscal, trade, exchange rate, and financial sector policies. They also consider such new measures as infrastructure development, cultural diversity, and economic spillovers from neighbors' growth.

Their analysis:

- Improves substantially on past attempts to account for the growth experience of Sub-Saharan African countries.

- Shows that low school attainment, political instability, poorly developed financial systems, large black-market exchange-rate premia, large government deficits, and inadequate infrastructure are associated with slow growth.

- Finds that Africa's ethnic diversity tends to slow growth and reduce the likelihood of adopting good policies.

- Identifies spillovers of growth performance between neighboring countries. The spillover effects of growth have implications for policy strategy. Improving policies alone boosts growth substantially, but if neighboring countries act together, the effects on growth are much greater. Specifically, the results suggest that the effect of neighbors' adopting a policy change is 2.2 times greater than if a single country acted alone.

Access to database:


Easterly, W., Levine, R. (1960-1989) Africa's Growth Tragedy: A Retrospective

Easterly and Levine Data Set. Africa's Growth Tragedy: Policies and Ethnic Divisions

Page Created By:  Madina Junussova. The content presented on this page is drawn directly from the source(s) cited above, and consists of direct quotations or close paraphrases. This material does not necessarily reflect the official view of the publishing organization.

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