Three new directions of research will capture the imagination of economists in the near future. African economies have been growing at unprecedented rates in this decade, reversing previous decades of negative growth. Recent research has focused on attempting to explain the factors affecting better economic performance. A number of economists have studied whether better luck — that is, high oil and commodity prices — or better institutions, policies and practices have precipitated this boom. It is still early, and more data will be required, particularly following the recent dramatic decline in commodity prices, to assess whether Africa’s gains are sustainable and can contribute to poverty alleviation.
More generally, the study of the impact of institutions on economic growth has generated significant interest in economics in the last decade. From colonial and imperial origins to ethnic diversity to terrorism and conflict, a wide range of institutions has been examined by economists. Further, with respect to Africa, a number of economists have begun investigating specific institutions, policies, and practices which have been successful in African countries and that may be replicated in other African countries.
Finally, while increasing agricultural productivity in Africa has been of longstanding interest to researchers, momentum for studying a “green revolution” for Africa has recently picked up among agricultural and development economists. Some are exploring financing and seed-distribution mechanisms, while others are studying the impact of intellectual property protection on bio-fuel development and biodiversity protection.