Empirical Study of the Impact of Governance on Economic Structural Change: Evidence from Sub-Saharan African Countries

Afolabi Tunde Ahmed, Tsimisaraka Raymondo Sandra Marcelline and Sabi Couscous Mouhamadou Nazirou
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Afolabi Tunde Ahmed: University of International Business and Economics (UIBE), Beijing, China.
Tsimisaraka Raymondo Sandra Marcelline: University of International Business and Economics (UIBE), Beijing, China.
Sabi Couscous Mouhamadou Nazirou: Zhongnan University of Economics and Law, China.

International Journal of Science and Business, 2021, vol. 5, issue 8, 260-277

Abstract: In this paper, we attempted to test whether the governance has a positive impact on the structural change in SSA or not. For the cause, we used the six indexes of the Institutional Quality namely Government Effectiveness, Rule of Law, Control of Corruption, Political Stability and Absence of Violence/Terrorism, Regulatory Quality, Voice of Accountability to see their impact on the structural change in SSA. We use 46 SSA countries from worldwide governance indicator of World Bank from 1996 to 2016 in a Generalized Method of Moment and Generalized Least Square regressions. The results show that only the Government Effectiveness is positively affecting the value added (proxy of structural change) of three sectors (agriculture, industry and service) of the SSA economies. Some affect positively one sector and negatively another sector, while the rest are insignificant for one sector and negative for other as example. Our results show that more efforts need to be done for the betterment of the institutional quality considering each sector’s particularity.

Keywords: Structural change; Growth; SSA; Governance; Value Added; GLS; GMM (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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