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Rethinking of Government Institutions and Governance Quality Indicators on Economic Growth in Sub-Saharan African Countries

Author

Listed:
  • Ahmet Şit

    (Malatya Turgut Ozal University)

  • Magdalena Radulescu

    (National University of Science and Technology Politehnica Bucharest
    University Lucian Blaga of Sibiu
    Azerbaijan State University of Economics (UNEC))

  • Hakan Güneş

    (Bartın University)

  • Hamis Miraji Ally Simba

    (Istanbul Gelisim University)

  • Mustafa Şit

    (Harran University)

  • Haydar Karadağ

    (Recep Tayyip Erdogan University)

Abstract

The study aims to investigate the effect of governance quality on economic growth and government consumption in Sub-Saharan African countries. Balanced dynamic panel data for 36 Sub-Saharan African countries from 2011 to 2022 were analyzed using GMM and Driscoll-Kraay regressions. In addition to the fact that there is no study in the literature that examines the effect of state governance indicators on economic growth in SSA countries, the addition of government consumption variable as a second dependent variable adds originality to the study. The empirical analysis revealed that government institutions have a positive effect and are significant in SSA countries’ economic growth. In addition, according to the Driscoll-Kraay regression, it is seen that governments’ development of institutions increases government consumptions. The governance indicators threshold that strengthens the government institution in Sub-Sahara Africa must be reached to increase the economic growth of Sub-Sahara Africa. For economic growth, effective government institutions and governance quality policies should be practiced and maintained among the Sub-Saharan African countries. Graphical Abstract

Suggested Citation

  • Ahmet Şit & Magdalena Radulescu & Hakan Güneş & Hamis Miraji Ally Simba & Mustafa Şit & Haydar Karadağ, 2024. "Rethinking of Government Institutions and Governance Quality Indicators on Economic Growth in Sub-Saharan African Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 20883-20905, December.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:4:d:10.1007_s13132-024-02040-6
    DOI: 10.1007/s13132-024-02040-6
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