Core infrastructure and industrial performance in Africa: Do institutions matter?

Ekundayo Mesagan and Mustapha O. Bello ()
Additional contact information
Mustapha O. Bello: University of Lagos

International Review of Economics, 2018, vol. 65, issue 4, No 7, 539-562

Abstract: Abstract The study investigates the role of institution in the nexus between core infrastructure and industrial performance in Africa. In this study, we select 25 African economies and data cover the period of 1996–2016. To conduct the panel analysis, we use variables such as manufacturing value added per capita to proxy industrial performance and employ the principal component analysis to generate core infrastructure index, as well as institution index. Using the fixed effect model, we find that core infrastructure has a positive but insignificant impact on industrial performance in the selected African countries. However, when we interact infrastructure with institution, results suggest that infrastructure has a positive and significant effect on industrial performance, alluding to the fact that institution is very important in making infrastructure to enhance industrial performance in Africa. Hence, African governments should formulate a sound industrial policy and standardise regulatory quality to boost industrial performance.

Keywords: Infrastructure; Institution; Industrial performance; Africa (search for similar items in EconPapers)
JEL-codes: D02 E62 H54 L94 L96 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Downloads: (external link)
http://link.springer.com/10.1007/s12232-018-0314-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:inrvec:v:65:y:2018:i:4:d:10.1007_s12232-018-0314-y

Ordering information: This journal article can be ordered from
http://www.springer. ... cy/journal/12232/PS2

DOI: 10.1007/s12232-018-0314-y

Access Statistics for this article

International Review of Economics is currently edited by Luigino Bruni

More articles in International Review of Economics from Springer, Happiness Economics and Interpersonal Relations (HEIRS)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().