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


  • 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.

Suggested Citation

  • Sakyi, Daniel, 2011. "Economic Globalisation, Democracy and Income in Sub-Saharan Africa: A Panel Cointegration Analysis," Proceedings of the German Development Economics Conference, Berlin 2011 72, Verein für Socialpolitik, Research Committee Development Economics.
  • Handle: RePEc:zbw:gdec11:72

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    References listed on IDEAS

    1. Fei Yu, 2011. "Indoor Air Pollution and Children’s Health: Net Benefits from Stove and Behavioral Interventions in Rural China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(4), pages 495-514, December.
    2. Frondel, Manuel & Schmidt, Christoph M., 2005. "Evaluating environmental programs: The perspective of modern evaluation research," Ecological Economics, Elsevier, vol. 55(4), pages 515-526, December.
    3. AfDB AfDB, . "The AfDB Group in North Africa 2009," Country Brochure, African Development Bank, number 116.
    4. Brunell, Thomas L. & DiNardo, John, 2004. "A Propensity Score Reweighting Approach to Estimating the Partisan Effects of Full Turnout in American Presidential Elections," Political Analysis, Cambridge University Press, vol. 12(01), pages 28-45, December.
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    More about this item


    Economic Globalisation; Democracy; Income; Sub-Saharan Africa;

    JEL classification:

    • P0 - Economic Systems - - General
    • E0 - Macroeconomics and Monetary Economics - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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