ABSTRACT Conventionally, an increase in international tourism receipts coupled with an upsurge in foreign tourist arrivals, into regions with many untapped investment opportunities, is naturally expected to trigger an influx of foreign direct investments (FDI) into such regions. Also, the resulting increase in FDI flows is believed to boost developments across many “green” and viable sectors, including tourism, within the host country upon equitable allocations of such foreign capital. T...
ABSTRACT Most economies in Sub–Saharan Africa (SSA) have been lagging behind in development due to low growth performance over the years. The destinations of SSA exports have largely remained the same, with Europe commanding the ‘lions’ share of total exports while intra-regional trade remains very low over the years. However, the assessment of the effect of export destinations (intra and inter-SSA exports) on economic growth has not received any significant attention in Sub–Saharan ...
ABSTRACT The dilemma concerning the choice between austerity and stimulus packages has reignited the finance-growth debate. This study joins the debate to examine the linkages between financial deepening, trade openness and economic growth in selected West African countries. The study looks at the two monetary zones in West Africa, namely the West African Monetary Zone (WAMZ) and West African Economic and Monetary Union (WAEMU). Using a panel data of twelve (12) countries covering 1992—2009...
ABSTRACT Most economies in Sub–Saharan Africa (SSA) have been associated with low and volatile growth performance over the years. Export diversification is identified in the literature as growth–inducing. However, the assessment of the effect of export diversification on economic growth has not received much attention in Sub–Saharan Africa. The study provides evidence on the relationship between export diversification and economic growth using panel data of forty–two (42) Sub–Saha...
ABSTRACT Many economies in Sub-Saharan Africa have been experiencing high external debt stocks over the past three or so decades, thereby deepening the problem of debt burden in the Region. Growth performance, however, remains relatively moderate over the years. The relationship between economic growth and external debt as espoused in theoretical and empirical literature remains unclear. Whilst a school of thought postulate that external debt supplements savings and investment, and hence prom...
ABSTRACT The importance of the construction industry cannot be overemphasized because of its strong linkages with other sectors of the economy. Despite this, the empirical literature on the non-linear (Bon curve) relationship between construction expenditure and economic growth remains unclear and hence, leave much space for further engagements. Therefore, this study seeks to find answers to these questions: Does construction expenditure matter in economic growth, and does the Bon curve hold ...
ABSTRACT Sub-Saharan African countries have experienced a decline in its economic growth rate due to delayed and still limited policy adjustments in the region, with a consequent rise in public debt and deteriorating international reserves. External debt and governance have been argued to impact a country’s economic growth. The study assessed the role of country-level governance structures in the relationship between external debt and economic growth using a panel of 38 Sub-Saharan African...
ABSTRACT The economic performance in Sub-Saharan Africa has been unimpressive, particularly in comparison with other developing regions like East Asia. Using a panel data for 42 Sub-Saharan African countries for the period 2005-2016, this study investigates the effects of political institutions and human capital on the economic performance in the SSA countries. By using linear dynamic panel data and a fixed effect model, with growth of GDP per capita as the dependent variable, this study is...
Using annual data from 1970-2010, this paper employs a panel fixed-effects model to estimate the effect of external debt, as a share of Gross Domestic Product (GDP), on economic growth in East Africa Community (EAC). This study was based on the Solow growth model augmented for debt. The Levin-Lin-Chu test (LLC) approach was used to investigate the properties of the data with respect to unit roots. The Hausman specification test was used to verify the panel fixed-effects model. The findings su...
Public and private investment in agricultural research and development (R&D) createspreconditions for the implementation of more advanced and better technologies. It enables theintroduction of new production processes and products which can result in higher earnings andpotential sectoral economic growth in Agriculture. Despite the fact that accelerated agriculturalresearch and development is a catalyst for the beginning of the long-run economic activity, itsimportance is not widely investigat...
ABSTRACT Governments’ role in fostering accelerated economic growth is very significant and plays a key role in poverty reduction for most developing economies, for which most Sub-Sahara African countries are dominant. The effect of public spending on economic growth with its attending policy implications has ignited the interest of researchers both theoretically and empirically. The study set out to determine the effect of total government spending on economic growth in Sub-Saharan Africa....
ABSTRACT This study analyzes the impact of foreign direct investment (FDI) on economic growth in East and Central Africa between 2000 and 2015. A sample of 24 countries made up of 16 from East Africa and 8 from Central Africa were considered. Data was obtained from World Bank Development Indicators and World Governing Indicators. I employed the pooled Ordinary Least Square (OLS) regression and panel data econometric techniques for the estimations and the findings revealed that FDI positively ...
ABSTRACT The study investigates the relationship between financial integration, proxy by portfolio equity flows, and economic growth in Sub-Saharan Africa. To achieve the set objective, we first estimate the baseline growth regression using the Generalized Methods of Moment (GMM) dynamic panel estimation framework, while controlling for initial income, human capital and other factors. The results suggest that portfolio equity flows have a significant positive relationship with economic growth...
ABSTRACT Urbanization is recognized as a key driver of rapid economic growth, structural transformation and poverty reduction. The enormous body of both theoretical and empirical knowledge widely supports the idea of a positive relationship between urbanization and economic growth. However, at the core of the existing debate is the causal direction. The first part of the study investigated the causal relationship between urbanization and economic growth in Sub-Saharan Africa (SSA) from the tw...
Poor governance in Sub-Saharan Africa has been a major hindrance to economic growth of the region compared to other regions in the rest of the world. To examine the influence of governance on economic growth of Sub-Saharan Africa, panel data on growth rate of Gross Domestic Product, governance indicators and other indicators of the three selected Sub-Saharan Africa countries namely Nigeria, South- Africa and Ghana for the period of 1996-2015 were sourced from World Development Indicators of t...