Economic Growth in Guinea and How to Accelerate It
This paper addresses two main questions: (1) What are the binding constraints to Guinea's economic growth? and (2) What would it take to accelerate growth in the country? Using the growth diagnostic approach, the paper finds three binding cons...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/530421507816489006/Economic-growth-in-guinea-and-how-to-accelerate-it http://hdl.handle.net/10986/28549 |
| Summary: | This paper addresses two main questions:
(1) What are the binding constraints to Guinea's
economic growth? and (2) What would it take to accelerate
growth in the country? Using the growth diagnostic approach,
the paper finds three binding constraints to growth: (i)
lack of good infrastructure (roads and electricity), (ii)
low access to finance, and (iii) poor governance. Simulation
results highlight the need for total factor productivity
growth for higher gross domestic product growth rates over
the medium term. Specifically, Guinea needs 1 to 2 percent
total factor productivity growth to maintain 5 to 7 percent
gross domestic product growth, with a 16 to 21 percent
investment rate by 2020. The lower bound of the range of the
investment rate is similar to Guinea's experience in
the past decade; the upper bound is slightly superior to the
country's recent performance. The paper discusses some
of the policy options to consider to address the key binding
constraints to economic growth as well as to overcome the
challenge of increasing total factor productivity growth in Guinea. |
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