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Economic Globalisation, Democracy and Income in Sub-Saharan Africa: A Panel Cointegration Analysis

Listed author(s):
  • Sakyi, Daniel

Sub-Saharan Africa has been characterised by low-income levels for decades. This paper analyses the impact of economic globalisation and democracy on income in sub-Saharan Africa using panel cointegration techniques. The paper considers a composite indicator for economic globalisation and several alternative indicators of democracy and highlights the essence of the simultaneous adoption of economic globalisation and democracy for sub- Saharan African countries. The empirical results based on a sample of 31 countries over the 1980-2005 period, clearly indicate that, whilst the total long run impact of economic globalisation on income has been beneficial, the total long run impact of democracy has been the bane of income in sub-Saharan Africa. The paper concludes that policy reforms should aim to improve democratic institutions in sub-Saharan Africa for its potential benefits to be realised.

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Paper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Berlin 2011 with number 72.

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Date of creation: 2011
Handle: RePEc:zbw:gdec11:72
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