Infrastructure, Export-Led Growth and Economic Development in Sub-Saharan Africa: An Empirical Analysis
Auta Elisha Menson
The IUP Journal of Managerial Economics, 2012, vol. X, issue 1, 46-78
This study examines the impact of infrastructure and outward-orientation development strategy on the development of Sub-Saharan African economies. Three structural models were estimated using two-stage least squares (2SLS) method, and the results indicate that infrastructure is a significant determinant of per capita GDP in SSA. The elasticities of the coefficients of per capita GDP with respect to telephone, power and road are 0.19, 1.01 and 0.14 respectively. The adjustment expression and the initial gap expression for infrastructure are positive and significant. The estimated convergence rate is about 2.34%. However, the primary export/GDP ratio is positive but not statistically significant. The study suggests that it is time to rethink and there is a need to shift to the new development policy agenda that focuses on domestic demand-led growth with emphasis on good governance that supports domestic growth drivers, large-scale investment in power, transport, and Information and Communication Technology (ICT) systems and other forms of soft and hard infrastructure, and encourages competitiveness and diversification towards higher value-added goods and services with greater technological content.
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Persistent link: https://EconPapers.repec.org/RePEc:icf:icfjme:v:10:y:2012:i:1:p:46-78
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