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Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa

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  • Simplice A. Asongu

    () (Yaoundé/Cameroon)

  • Nicholas M. Odhiambo

    () (Pretoria, South Africa)

Abstract

This study examines how income-driven governance affects inclusive human development in Sub-Saharan Africa with data for the period 2000-2012. The empirical evidence is based on the Generalised Method of Moments (GMM) and Tobit regressions. Nine bundled and unbundled concepts of governance are used: political (voice & accountability and political stability/no violence), economic (government effectiveness and regulation quality) and institutional (corruption-control and the rule of law) governances. The main finding is that ‘middle income’-driven governance has a higher effect on inclusive human development than ‘low income’-driven governance. Policy implications are discussed in the light of: (i) the contemporary relevance of findings; (ii) the pivotal role of a higher income level in the post-2015 sustainable development agenda; and (iii) inconsistent strands in the literature and in foreign aid policies.

Suggested Citation

  • Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 19/036, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:19/036
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    Keywords

    Inclusive development; Income levels; Governance; Africa;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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