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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Main Authors: Jervis Sambilla Jomi, Francis Menjo Baye
Format: Article
Language:English
Published: Springer 2025-08-01
Series:Discover Global Society
Subjects:
Online Access:https://doi.org/10.1007/s44282-025-00235-z
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author Jervis Sambilla Jomi
Francis Menjo Baye
author_facet Jervis Sambilla Jomi
Francis Menjo Baye
author_sort Jervis Sambilla Jomi
collection DOAJ
description 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.
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spelling doaj-art-b2a15e8e03734323bb1264043e9697ce2025-08-24T11:15:51ZengSpringerDiscover Global Society2731-96872025-08-013112610.1007/s44282-025-00235-zImplications of institutional quality for macroeconomic productivity in sub-Saharan AfricaJervis Sambilla Jomi0Francis Menjo Baye1Faculty of Economics and Management, University of Yaoundé IIDepartment of Quantitative Methods, Faculty of Economics and Management, University of Yaoundé IIAbstract 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.https://doi.org/10.1007/s44282-025-00235-zInstitutional qualityMacroeconomic productivityGEE PASystem GMMSSA
spellingShingle Jervis Sambilla Jomi
Francis Menjo Baye
Implications of institutional quality for macroeconomic productivity in sub-Saharan Africa
Discover Global Society
Institutional quality
Macroeconomic productivity
GEE PA
System GMM
SSA
title Implications of institutional quality for macroeconomic productivity in sub-Saharan Africa
title_full Implications of institutional quality for macroeconomic productivity in sub-Saharan Africa
title_fullStr Implications of institutional quality for macroeconomic productivity in sub-Saharan Africa
title_full_unstemmed Implications of institutional quality for macroeconomic productivity in sub-Saharan Africa
title_short Implications of institutional quality for macroeconomic productivity in sub-Saharan Africa
title_sort implications of institutional quality for macroeconomic productivity in sub saharan africa
topic Institutional quality
Macroeconomic productivity
GEE PA
System GMM
SSA
url https://doi.org/10.1007/s44282-025-00235-z
work_keys_str_mv AT jervissambillajomi implicationsofinstitutionalqualityformacroeconomicproductivityinsubsaharanafrica
AT francismenjobaye implicationsofinstitutionalqualityformacroeconomicproductivityinsubsaharanafrica