Capital Accumulation in Sub-Saharan Africa: Income-group and Sector Differences

Abstract

This paper highlights heterogeneity in the process of capital accumulation across different countries by income group in Sub-Saharan Africa, and estimates empirical specifications of private capital in the primary, industry and service sectors. The results indicate a more rapid accumulation of capital in the relatively high-income group and a widening public–private capital accumulation gap in the region. The level of GDP per capita, quality of governance and public capital stock are found to influence private capital accumulation. Unexpectedly, financial variables do not appear to matter.