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Determinants of Institutional Quality in Sub-Saharan African Countries

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  • Siba, Eyerusalem G.

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

In this study, a number of factors have been considered as potential determinants of institutional quality in Sub- Saharan African countries. The empirical analysis has shown that historical factors such as state legitimacy determine the quality of current institutions in the region. Foreign aid dependence is found to erode quality of governance as measured by rule of law. Variability of aid is found to counterbalance the destructive nature of high level of aid dependence. However, the last result is not retained in the robust regression analysis performed. Countries with strong political constraints on the ruling elites, proxied by checks and balances between executive and legislative branches of governments, and press freedom, are found to have better quality of institutions. Large countries and those closer to equator are disadvantaged in their success of building better quality institutions. Unlike the popular discussions, ethnic fractionalization and identity of last coloniser do not explain variations in institutional quality in the region. The paper also devotes a section for a case study of Ethiopian institutional development to complement the cross country analysis by adding cultural, historical and political specificities.

Suggested Citation

  • Siba, Eyerusalem G., 2008. "Determinants of Institutional Quality in Sub-Saharan African Countries," Working Papers in Economics 310, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0310
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    File URL: http://hdl.handle.net/2077/10382
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    References listed on IDEAS

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    4. Stéphane Straub, 2000. "Empirical Determinants of Good Institutions: Do We Know Anything?," Research Department Publications 4215, Inter-American Development Bank, Research Department.
    5. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    6. Bardhan, Pranab, 1999. "Institutions, Governance and Political Economy of Development: Some Reflections," Journal of African Economies, Centre for the Study of African Economies, vol. 8(0), pages 149-167, December.
    7. World Bank, 2006. "World Development Indicators 2006," World Bank Publications - Books, The World Bank Group, number 8151, December.
    8. Islam, Roumeen & Montenegro, Claudio E., 2002. "What determines the quality of institutions?," Policy Research Working Paper Series 2764, The World Bank.
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    Citations

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    Cited by:

    1. Akinleye, Oludiran & Adekunle, Ibrahim, 2019. "Institutions and Macroeconomic Instability in Nigeria," MPRA Paper 98829, University Library of Munich, Germany.
    2. Jonathan E. Ogbuabor & Anthony Orji & Charles O. Manasseh & Onyinye I. Anthony-Orji, 2020. "Institutional Quality and Growth in West Africa: What Happened after the Great Recession?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(4), pages 343-361, November.
    3. Oumarou Zallé and Idrissa M. Ouédraogo, 2020. "The Institutional Quality in West Africa: The Supremacy of Cultural and Geographical Factors," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(2), pages 31-62, June.
    4. Zohid Askarov & Hristos Doucouliagos, 2013. "Does aid improve democracy and governance? A meta-regression analysis," Public Choice, Springer, vol. 157(3), pages 601-628, December.
    5. Brice Kamguia & Sosson Tadadjeu & Clovis Miamo & Henri Njangang, 2022. "Does foreign aid impede economic complexity in developing countries?," International Economics, CEPII research center, issue 169, pages 71-88.
    6. Javed, Omer, 2013. "Determinants of Institutional Quality: A Case Study of IMF Programme Countries," MPRA Paper 51344, University Library of Munich, Germany.
    7. Hossein Mirshojaeian Hosseini & Shinji Kaneko, 2012. "Spatial Spillover of Governance and Institutional Quality: A Spatial Econometric Approach," IDEC DP2 Series 2-3, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    8. 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.

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    More about this item

    Keywords

    Institutional Quality; Rule of Law; Foreign Aid; Colonialism; Ethnic Fractionalization; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • N47 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Africa; Oceania
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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