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On the Nexus Between Institutions and Economic Development: An Empirical Analysis for Sub-Saharan African Countries

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  • Sinan Erdogan

    (Hatay Mustafa Kemal University)

  • Ali Acaravci

    (Hatay Mustafa Kemal University)

Abstract

The Sub-Saharan African region experienced a fluctuated development process, and it is one of the regions facing severe underdevelopment in the modern era. Many studies have been conducted to unveil the factors, which cause the underdevelopment, and there is an ongoing discussion on this topic. The main objective of this study to inquire about how institutional and economic factors affect economic development in Sub-Saharan African countries from 1990 to 2016 by utilizing second-generation panel data methods. Empirical findings are as follows: (i) Democracy, peace, market size, and population growth have a positive and statistically significant effect on economic development, whereas foreign direct investment has a negative one. (ii) Total debt service, investments, and corruption have a negative but statistically insignificant effect on economic development. (iii) Moreover, the effect of urban population on economic development varies based on the estimation methodology. The implications and policy inferences of the empirical findings are discussed in the related sections of the study.

Suggested Citation

  • Sinan Erdogan & Ali Acaravci, 2022. "On the Nexus Between Institutions and Economic Development: An Empirical Analysis for Sub-Saharan African Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1857-1892, August.
    • Handle: RePEc:pal:eurjdr:v:34:y:2022:i:4:d:10.1057_s41287-021-00445-6
    DOI: 10.1057/s41287-021-00445-6
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    More about this item

    Keywords

    Economic development; Sub-Saharan African countries; Institutions; Panel data analysis;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

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