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Analysis of Sectoral Outcomes and Institutional Quality Nexus in Sub-Saharan Africa

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  • Davidmac O. Ekeocha
  • Jonathan E. Ogbuabor
  • Patterson C. Ekeocha
  • Anthony Orji

Abstract

Following the need for more recent rigorous empirical evidence on the role of institutions at sectoral level as well as the conflicting empirical evidences on the institutions-growth relationship in Africa, this study investigated the sectoral impacts of institutional quality in Sub-Saharan Africa (SSA). The study also revisited the role of institutions in the aggregate economy. The system GMM estimation procedure and a panel of 42 SSA countries were used over the period 2010 to 2018. The results indicate that contrary to the widely held view that institutions foster growth and development, the role of institutional quality in sectoral and aggregate economic performance in SSA generally remained muted. However, the results indicate that initial level of real GDP and labor are robust drivers of growth, particularly in the aggregate economy. The study therefore concludes that the sub-region requires institutional reform, enhanced human capital development and capital accumulation to drive sectoral and aggregate economic performance in SSA. JEL Classification : N20; F43; C23; N17

Suggested Citation

  • Davidmac O. Ekeocha & Jonathan E. Ogbuabor & Patterson C. Ekeocha & Anthony Orji, 2023. "Analysis of Sectoral Outcomes and Institutional Quality Nexus in Sub-Saharan Africa," SAGE Open, , vol. 13(4), pages 21582440231, October.
    • Handle: RePEc:sae:sagope:v:13:y:2023:i:4:p:21582440231202577
    DOI: 10.1177/21582440231202577
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    References listed on IDEAS

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    More about this item

    Keywords

    institutional quality; sectoral economic performance; GMM regression; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • N20 - Economic History - - Financial Markets and Institutions - - - General, International, or Comparative
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • N17 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Africa; Oceania

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