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Globalisation and Inclusive Growth in Africa: The Role of Institutional Quality

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  • Terver Theophilus Kumeka
  • Isiaka Akande Raifu
  • Oluwatosin Adeniyi

Abstract

This study examines the relationship between globalisation and inclusive growth by considering the modulating role of institutional quality. To achieve our broad objective, we use data from 45 African economies over 1996–2018 to determine the panel cointegration and cointegrating regression association between inclusive growth, globalisation and institutional quality. To determine a suitable estimation technique for the empirical analysis, several pre-estimation tests were conducted. After confirming the existence of cointegration and slope heterogeneity, we adapted the long-run panel cointegrating methods—the fully modified ordinary least squares and dynamic ordinary least squares estimations. The results from both show that aggregate globalisation and its various dimensions have positive and significant effects on inclusive growth. Besides the direct positive impact on inclusive growth, globalisation has indirect positive and significant impact on inclusive growth through institutional quality. Finally, some policy implications are highlighted. JEL Codes: E02, F62, F63, O15, O43

Suggested Citation

  • Terver Theophilus Kumeka & Isiaka Akande Raifu & Oluwatosin Adeniyi, 2024. "Globalisation and Inclusive Growth in Africa: The Role of Institutional Quality," Foreign Trade Review, , vol. 59(1), pages 62-97, February.
    • Handle: RePEc:sae:fortra:v:59:y:2024:i:1:p:62-97
    DOI: 10.1177/00157325221142652
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    More about this item

    Keywords

    Globalisation; institutional quality; inclusive growth; cointegrating regressions;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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