Institutional Quality and Inclusive Growth in sub-Sahara Africa: Evidence from Panel ARDL

Oluwafunmilola Elizabeth AFOLABI, Olusola Joel OYELEKE

Abstract

In most African economies, the pursuit for measures to foster sustainable economic growth and development has always been prioritized on the agenda of authorities, likewise the need to ensure inclusive growth. This paper investigated the effect of institutional quality on inclusive growth in 29 sub-Saharan Africa countries from 1996 to 2021. Data sourced from World Development Indicators, Worldwide Governance Indicators, and the Global Financial Development Indicator were used for the analyses. After examining the stationarity behaviour of the series, Panel Autoregressive Distributed Lag (PARDL) technique of estimation was employed to analyse the data. Long-run estimated results showed that institutional quality indices exerted positive and significant influence on inclusive growth. However, in the short-run model, only political stability and absence of violence has significant relation with positive change in inclusive growth in the region. Thus, authorities in the region should focus on strengthening governance frameworks to enhance environment that would enable inclusive growth to thrive.

 

Keywords

nclusive growth, institutional quality, sub-Saharan Africa

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References

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