Implications of institutional quality for macroeconomic productivity in sub-Saharan Africa

Abstract Economic development is a priority for many nations in the Global South, particularly in sub-Saharan Africa, where institutional quality remains a challenge. This paper examines the implications of institutional quality for macroeconomic productivity in SSA using data from 38 countries betw...

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Bibliographic Details
Main Authors: Jervis Sambilla Jomi, Francis Menjo Baye
Format: Article
Language:English
Published: Springer 2025-08-01
Series:Discover Global Society
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Online Access:https://doi.org/10.1007/s44282-025-00235-z
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Summary:Abstract Economic development is a priority for many nations in the Global South, particularly in sub-Saharan Africa, where institutional quality remains a challenge. This paper examines the implications of institutional quality for macroeconomic productivity in SSA using data from 38 countries between 2003 and 2020. We employ the generalized estimating equation population average model and the two-step system generalized method of moments to address this objective. Results reveal that institutional quality is significantly associated with improvements in macroeconomic productivity. Results also show that institutions in countries with an English colonial heritage are more likely to be associated with improvements in macroeconomic productivity than those with a French colonial Heritage. These findings are consistent with the view that enhancing institutional quality is good for macroeconomic growth. French heritage countries could strengthen legal frameworks for property rights, invest in education and vocational training to improve human capital, and promote transparency and accountability in governance.
ISSN:2731-9687