causal

Tanzania's growth recovery was a statistical artifact

Tanzania's GDP series until the 1990s assumed proportionality—that when the recorded economy declined the unrecorded economy declined too—but when the World Bank rebased the series in the 1990s it adopted the opposite assumption that the informal economy grew when the formal economy declined; this methodological switch settled a deep academic question at the statistical office and produced a sudden apparent growth recovery, implying the 1980s decline was overestimated and the 1990s liberalization recovery was overestimated.

causalpending

Speaker

Morten Jerven

Evidence Quote

the extent of economic decline was overestimated in the 1980s and the corollary would be that economic growth recovery in the 1990s following liberalization was overestimated.

Source

Morten Jerven on Measuring African Poverty and ProgressEconTalk
Created: 6/13/2026, 12:25:58 AM

My Notes

Loading notes...