The Impact of social infrastructures on economic growth of Sub-Saharan Africa: implications for sustainable economic growth

Abstract

Background: Economic growth in sub-Saharan Africa has consistently remained the least when compared to any other region in the world. Countries in the region have received a lot of grants in form of aids to boost their capital accumulation; yet there is slow growth in most parts of the region. Many countries have implemented the World Bank and IMF suggested policies; and majority of the countries have adopted democratic political system. Yet growth in the region has remained very low. It then becomes pertinent to identify the causes of the low economic growth pattern in sub-Saharan Africa (SSA). The objective of this study, therefore, is to determine the impact of social infrastructure on economic growth of sub-Saharan Africa. Data and methods : The data for this study were 2001-2017 time-series data sourced from World Governance Indicators (WGI) and World Development Indicators (WDI). The standard panel data of fixed effect (FE) and random effect (RE) were employed in the analysis of the data, while Hausman test results guided the final choice of fixed effect estimation. Findings: The results show that corruption is statistically and significantly affecting economic growth of sub-Saharan African (SSA) countries. This means that control of corruption will help boost the economies in the region as low corruption is a prerequisite for economic recovery and sustainable development. Besides, trade openness, labour supply, and general government consumption significantly affect economic growth in SSA. Conclusion: SSA countries should control corruption as well as open their economies so as to reap the positive effects of economy of scale derived from diversification.