Catalysts of Economic Welfare in Africa: A Cross-Sectional Autoregressive Distributed Lag Approach

Kuti Ayomide Oluwafunmisho (), Aderogba Taiwo Adebusuyi (), Ezenwa Ndubuisi Johnbosco () and Quadri Rasheed Adegboyega ()
Additional contact information
Kuti Ayomide Oluwafunmisho: Department of Economics, Olabisi Onabanjo University, Nigeria
Aderogba Taiwo Adebusuyi: Department of Economics, Olabisi Onabanjo University, Nigeria
Ezenwa Ndubuisi Johnbosco: Alex Ekwueme Federal University, Nigeria
Quadri Rasheed Adegboyega: Poznań University of Life Sciences, Poland

Acta Universitatis Sapientiae, Economics and Business, 2023, vol. 11, issue 1, 18-41

Abstract: This study provides empirical perspectives on the catalysts of economic welfare in Africa, drawing inference from macroeconomic and non-macroeconomic factors. Leveraging a sample of a balanced panel dataset of 35 countries across Africa, this study provides novel applications of the cross-sectional autoregressive distributed lag methodology to economic welfare analysis in Africa. Issues of cross-sectional dependence and slope homogeneity were accounted for whilst establishing causal relationships between economic welfare proxied by the Human Development Index and macroeconomic and non-macroeconomic drivers of welfare. Based on cross-sectional autoregressive distributed lag estimation results, a 1% increase in economic growth was shown to account for a 0.233 percent and 0.253 percent increase in economic welfare in the long run and short run respectively. In addition, technology accounted for a 1.81 percent increase in economic welfare in the long run. The outcome of the Dumitrescu–Hurlin causality test demonstrated causality between trade openness, government effectiveness, economic growth, and economic welfare.

Keywords: Africa; CS-ARDL; Human Development Index; economic welfare; poverty (search for similar items in EconPapers)
JEL-codes: C33 D60 F43 I32 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/auseb-2023-0002 (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:vrs:auseab:v:11:y:2023:i:1:p:18-41:n:10

DOI: 10.2478/auseb-2023-0002

Access Statistics for this article

Acta Universitatis Sapientiae, Economics and Business is currently edited by Dávid László

More articles in Acta Universitatis Sapientiae, Economics and Business from Sciendo
Bibliographic data for series maintained by Peter Golla ().