Economic Resilience: Evidence for African economies Application of a panel VAR model

Author:

Sandambi NerhumORCID

Abstract

Abstract

A panel VAR model was applied to analyse the economic resilience of 54 African countries from 1990–2022. Realising how exogenous shocks influence countries' ability to respond from the outset is naturally the aim of the study. Thus, the results suggest that there is a significant presence of economies based on international market expectations, which are significantly explained by the presence of exogenous shocks. On the other hand, the Impulse Response Functions help to explain the fact that 90% of African countries have economies controlled by international market expectations, which, in the presence of exogenous international market shocks, end up determining the path and behaviour of economies in the medium term. On the other hand, the results show that countries such as Botswana, South Africa, Namibia and Ghana have a greater capacity to respond in a context of uncertainty, and there are strong reasons to suggest that these countries are able to control their economies, unlike, for example, the results for Angola in a context of uncertainty, Democratic Congo and Brazzaville, Equatorial Guinea and Sierra Leone, the evidence nevertheless shows that in a context of uncertainty, exogenous shocks control and determine the economic path in the long term. These results also suggest that these economies should be characterised as economies without control by the authorities. Thus, as exogenous shocks increase, there are significant increases in the destructive capacity of these economies. Jel Classification: c01; c21; c23; c33; F10.

Publisher

Research Square Platform LLC

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