INSTITUTIONS AND INCLUSIVE GROWTH NEXUS IN SUB-SAHARAN AFRICA: AN EMPIRICAL INVESTIGATION
Despite abundant natural resources and a growing youthful population, Sub-Saharan Africa continues to experience sluggish economic growth due to the persistent weakness of institutional structures often manifested through limited regulatory capacity, political instability, and governance deficits—w...
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Kwara State University, Malete Nigeria
2025-06-01
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| Series: | Malete Journal of Accounting and Finance |
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| Online Access: | https://majaf.com.ng/index.php/majaf/article/view/246 |
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| author | Lukman Shehu Adam Abdulhakeem, A. Kilishi Musa Ayodeji Adebiyi |
| author_facet | Lukman Shehu Adam Abdulhakeem, A. Kilishi Musa Ayodeji Adebiyi |
| author_sort | Lukman Shehu Adam |
| collection | DOAJ |
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Despite abundant natural resources and a growing youthful population, Sub-Saharan Africa continues to experience sluggish economic growth due to the persistent weakness of institutional structures often manifested through limited regulatory capacity, political instability, and governance deficits—which undermine policy effectiveness, investment climates, and long-term development outcomes. This study investigates the direct and interactive influence of economic institutions and governance in promoting inclusive growth in Sub-Saharan Africa (SSA).A panel data of forty-one SSA countries over a period 2007 to 2022 is analysed using system GMM technique. Country selction is based on the availability of consistent and relevant data where the use of lagged variables as instruments are valid. The key findings are: economic institutions matter for stimulating inclusive growth in SSA; the influence of economic institutions is strengthened with good governance; governance has weak direct effect; and good governance have greater impact if complimented with improved economic institutions. This study concludes that while good governance alone has a limited direct impact on inclusive growth in Sub-Saharan Africa, it plays a critical enabling role by amplifying the effectiveness of economic institutions. Hence, sustainable and inclusive development in the region is most achievable through synergistic reforms that concurrently strengthen economic institutions and enhance governance quality. Therefore, it is recommended that policymakers in SSA should undertake institutional reforms that will ensure security of private properties including intellectual property, integrity of government, open and competitive labour market, equal and fair access to finance, conducive business environment, stable prices and reliable currency. While governance should be made more participatory, effective, accountable to the people, and uphold the principles of rule of law.
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| format | Article |
| id | doaj-art-43116d6bf7c14c66a83411e8477197de |
| institution | Kabale University |
| issn | 2735-9603 |
| language | English |
| publishDate | 2025-06-01 |
| publisher | Kwara State University, Malete Nigeria |
| record_format | Article |
| series | Malete Journal of Accounting and Finance |
| spelling | doaj-art-43116d6bf7c14c66a83411e8477197de2025-08-26T01:31:00ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032025-06-0152INSTITUTIONS AND INCLUSIVE GROWTH NEXUS IN SUB-SAHARAN AFRICA: AN EMPIRICAL INVESTIGATIONLukman Shehu Adam0Abdulhakeem, A. Kilishi1Musa Ayodeji Adebiyi2Kwara State University, MaleteUniversity of Ilorin, Ilorin, NigeriaUniversity of Ilorin, Ilorin, Nigeria Despite abundant natural resources and a growing youthful population, Sub-Saharan Africa continues to experience sluggish economic growth due to the persistent weakness of institutional structures often manifested through limited regulatory capacity, political instability, and governance deficits—which undermine policy effectiveness, investment climates, and long-term development outcomes. This study investigates the direct and interactive influence of economic institutions and governance in promoting inclusive growth in Sub-Saharan Africa (SSA).A panel data of forty-one SSA countries over a period 2007 to 2022 is analysed using system GMM technique. Country selction is based on the availability of consistent and relevant data where the use of lagged variables as instruments are valid. The key findings are: economic institutions matter for stimulating inclusive growth in SSA; the influence of economic institutions is strengthened with good governance; governance has weak direct effect; and good governance have greater impact if complimented with improved economic institutions. This study concludes that while good governance alone has a limited direct impact on inclusive growth in Sub-Saharan Africa, it plays a critical enabling role by amplifying the effectiveness of economic institutions. Hence, sustainable and inclusive development in the region is most achievable through synergistic reforms that concurrently strengthen economic institutions and enhance governance quality. Therefore, it is recommended that policymakers in SSA should undertake institutional reforms that will ensure security of private properties including intellectual property, integrity of government, open and competitive labour market, equal and fair access to finance, conducive business environment, stable prices and reliable currency. While governance should be made more participatory, effective, accountable to the people, and uphold the principles of rule of law. https://majaf.com.ng/index.php/majaf/article/view/246inclusive growtheconomic institutionsgovernancesystem GMMSub-Saharan Africa |
| spellingShingle | Lukman Shehu Adam Abdulhakeem, A. Kilishi Musa Ayodeji Adebiyi INSTITUTIONS AND INCLUSIVE GROWTH NEXUS IN SUB-SAHARAN AFRICA: AN EMPIRICAL INVESTIGATION Malete Journal of Accounting and Finance inclusive growth economic institutions governance system GMM Sub-Saharan Africa |
| title | INSTITUTIONS AND INCLUSIVE GROWTH NEXUS IN SUB-SAHARAN AFRICA: AN EMPIRICAL INVESTIGATION |
| title_full | INSTITUTIONS AND INCLUSIVE GROWTH NEXUS IN SUB-SAHARAN AFRICA: AN EMPIRICAL INVESTIGATION |
| title_fullStr | INSTITUTIONS AND INCLUSIVE GROWTH NEXUS IN SUB-SAHARAN AFRICA: AN EMPIRICAL INVESTIGATION |
| title_full_unstemmed | INSTITUTIONS AND INCLUSIVE GROWTH NEXUS IN SUB-SAHARAN AFRICA: AN EMPIRICAL INVESTIGATION |
| title_short | INSTITUTIONS AND INCLUSIVE GROWTH NEXUS IN SUB-SAHARAN AFRICA: AN EMPIRICAL INVESTIGATION |
| title_sort | institutions and inclusive growth nexus in sub saharan africa an empirical investigation |
| topic | inclusive growth economic institutions governance system GMM Sub-Saharan Africa |
| url | https://majaf.com.ng/index.php/majaf/article/view/246 |
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