Governance and Economic Growth in Africa

Anas Mossadak

International Journal of Economics and Financial Research, 2017, vol. 3, issue 12, 323-331

Abstract: Good governance is essential for economic development as it enhances the effectiveness of economic policies undertaken by the government. The aim of this paper is to study the relationship between governance and economic growth in Africa. Using the World Bank governance indicators we construct a composite index to resume all the indicators in one variable that will be used to measure the impact of governance on growth. The main result of this study is that a change in the governance index of a unit is likely to produce an increase of 1.7% in real GDP. This result seems to be extremely important considering the shortage of financial resources in Africa. Improving governance seems to be the best and the less expensive way the boost economic growth. Thus, African countries need to strengthen their economic efficiency by promoting results-based fiscal management, improving their doing business environment and investing in education to improve the quality of human factor.

Keywords: Governance; Economic growth; Principal component analysis; Africa. (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.arpgweb.com/pdf-files/ijefr3(12)323-331.pdf (application/pdf)
https://www.arpgweb.com/?ic=journal&journal=5&month=12-2017&issue=12&volume=3 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arp:ijefrr:2017:p:323-331

Access Statistics for this article

International Journal of Economics and Financial Research is currently edited by Dr. Abu Hassan Bin Md Isa

More articles in International Journal of Economics and Financial Research from Academic Research Publishing Group Rahim Yar Khan 64200, Punjab, Pakistan.
Bibliographic data for series maintained by Managing Editor ().