Mauritius: The Drivers of Growth – Can the Past Be Extended?

• Authors: Svirydzenka Katsiaryna , Petri Martin
• Languages of publication: EN

Abstracts

EN

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.

Keywords

EN

Growth; Mauritius; Growth accounting

• Publisher: Uniwersytet Warszawski. Wydział Nauk Ekonomicznych
• Journal: Journal of Banking and Financial Economics
• Year: 2017
• Issue: 2(8)
• Pages: 54–83

Dates

published

2017-10-10

Contributors

author

Svirydzenka Katsiaryna

• International Monetary Fund, United States

author

Petri Martin

• International Monetary Fund, United States

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Identifiers

ISSN

2353-6845

DOI

10.7172/2353-6845.jbfe.2017.2.3