EconPapers    
Economics at your fingertips  
 

Macro and institutional determinants of domestic investment in Sub-Saharan African countries

Olusegun Akanbi

No 20163, Working Papers from University of South Africa, Department of Economics

Abstract: This study examines the determinants of domestic investment in sub-Saharan African (SSA) countries with explicit focus on the role of governance/institutions. The literature has emphases more on the macroeconomic factors that explain investment, neglecting the non-economic causes that could be more important. A panel of 45 selected sub-Saharan African countries and the period 1996?2013 were considered in the estimations using the two-stage least-squares estimation techniques. The results are in line with the findings of existing literature. The study expands on the analysis that governance/institutions play an important role in explaining the long-term pattern of domestic investment in the region. In addition, the study identify that a sustainable level of domestic investment could be attained at a particular governance rating. Therefore, countries with better governance ratings will achieve higher investment levels and domestic investment tends to converge as poor governance is attained.

Keywords: convergence; domestic investment; GDP; governance and institutions; sub-Saharan Africa (search for similar items in EconPapers)
Date: 2016-05
New Economics Papers: this item is included in nep-afr and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://uir.unisa.ac.za/bitstream/handle/10500/2016 ... 0paper%2007-2016.pdf (application/pdf)

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:uza:wpaper:20163

Access Statistics for this paper

More papers in Working Papers from University of South Africa, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Shaun Donovan ().

 
Page updated 2021-06-10
Handle: RePEc:uza:wpaper:20163