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Institutions and economic growth in Africa: a spatial econometric approach

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  • Roberto Ganau

    (University of Padova)

Abstract

This paper uses a sample of 50 African countries observed over the period 1981–2001 in order to investigate whether and how institutional factors—i.e. democracy, legislature effectiveness and regime instability—affect the short-run GDP per capita growth. Spatial econometric tools are employed in order to control for the potential spatial dependence existing across neighbour countries. Results suggest a negative effect of democracy and regime instability on growth, while it emerges a positive effect of legislature effectiveness. Spatial externalities seem to matter: being surrounded by countries with a high level of democracy stimulates growth, while regime instability in neighbour countries plays a negative effect. The level of legislature effectiveness in neighbour countries seems to have a negligible effect on the short-run growth in the home country.

Suggested Citation

  • Roberto Ganau, 2017. "Institutions and economic growth in Africa: a spatial econometric approach," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 34(3), pages 425-444, December.
    • Handle: RePEc:spr:epolit:v:34:y:2017:i:3:d:10.1007_s40888-017-0057-3
    DOI: 10.1007/s40888-017-0057-3
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    More about this item

    Keywords

    Institutions; Economic growth; Africa; Spatial econometrics;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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