On the Nexus Between Institutions and Economic Development: An Empirical Analysis for Sub-Saharan African Countries

Sinan Erdogan and Ali Acaravci ()
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Ali Acaravci: Hatay Mustafa Kemal University

The European Journal of Development Research, 2022, vol. 34, issue 4, No 10, 1857-1892

Abstract: Abstract The Sub-Saharan African region experienced a fluctuated development process, and it is one of the regions facing severe underdevelopment in the modern era. Many studies have been conducted to unveil the factors, which cause the underdevelopment, and there is an ongoing discussion on this topic. The main objective of this study to inquire about how institutional and economic factors affect economic development in Sub-Saharan African countries from 1990 to 2016 by utilizing second-generation panel data methods. Empirical findings are as follows: (i) Democracy, peace, market size, and population growth have a positive and statistically significant effect on economic development, whereas foreign direct investment has a negative one. (ii) Total debt service, investments, and corruption have a negative but statistically insignificant effect on economic development. (iii) Moreover, the effect of urban population on economic development varies based on the estimation methodology. The implications and policy inferences of the empirical findings are discussed in the related sections of the study.

Keywords: Economic development; Sub-Saharan African countries; Institutions; Panel data analysis (search for similar items in EconPapers)
JEL-codes: C30 O11 O15 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1057/s41287-021-00445-6

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