Infrastructure Development and Sectoral Growth Nexus: Evidence from Sub-Saharan Africa

Dennis Boahene Osei () and Isaac Bentum-Ennin ()
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Dennis Boahene Osei: University of the Witwatersrand
Isaac Bentum-Ennin: University of Cape Coast

A chapter in The Palgrave Handbook of Africa’s Economic Sectors, 2022, pp 841-866 from Springer

Abstract: Abstract Building on recent empirical evidence which mainly focused on infrastructure–aggregate growth nexus, this chapter examines the relationship between infrastructure development and sectoral growth in 29 Sub-Saharan Africa (SSA) countries during the 2000–2014 period. Evidence based on system Generalized Method of Moments (GMM) shows positive and significant impact of infrastructure development on both industry and services sectors’ growth. However, no relationship was established between infrastructure development and agriculture sector growth. From the policy perspective, our findings are informative and present crucial insights for policymakers and regulators in SSA to design and implement policies targeted at improving infrastructure to propel growth in the agriculture, industry, and service sectors.

Keywords: Infrastructure development; Sectoral growth; Sectoral value addition; GMM; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-75556-0_33

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DOI: 10.1007/978-3-030-75556-0_33

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