Governance and Development in Africa: A Panel Causal Investigation

Hammed Adetola Adefeso

Abstract


This study examined the direction of causality and relationship between governance and development in a panel of 37 African countries during 1996 to 2016 period. The Panel cointegration supports the existence of long-run relationship between governance and development in African countries. The study found bidirectional causality between governance and development in the short-run and unidirectional causality from development to governance in the long-run for African countries. The policy implication from these findings suggests that for African countries to experience good governance in the long-run, there must be in place an improved human development indicator that affects positively the wellbeing and standard of living of the citizenries.

Keywords


Governance; Development; Panel cointegration; Africa

Full Text:

PDF

References


Abu, N., Karim, M. Z. A., & Aziz, M. I. A. (2014). Low savings rates in the Economic Community of West African States (ECOWAS): The role of the political instability-income interaction. South East European Journal of Economics and Business, 8(2), 53-63.

Ades, A., & Chua, H. B. (1997). Thy neighbor’s curse: Regional instability and economic growth. Journal of Economic Growth, 2(3), 279-304.

Aisen, A., & Veiga, F. J. (2013). How does political in­stability affect economic growth? European Journal of Political Economy, 29, 151-167.

Alesina, A., Ozler, S., Roubini, N., & Swagel, P. (1996). Political instability and economic growth. Journal of Economic Growth, 1(2), 189-212.

Anoruo, E., & Braha, H. (2005). Corruption and eco­nomic growth: The African experience. Journal of Sustainable Development in Africa, 7(1), 43-55.

Bollen, K. A., & Jackman, R. W. (1985). Economic and noneconomic determinants of political democracy in the 1960s. Research in Political Sociology, 1, 27-48.

Breitung, J. (2000). The local power of some unit root tests for panel data. Advances in Econometrics, 15, 161-177.

Butkiewicz, J. L., & Yanikkaya, H. (2006). Institutional quality and economic growth: Maintenance of the rule of law or democratic institutions, or both? Economic Modelling, 23 (4), 648-661.

Choi, I. (2001). Unit root tests for panel data. Journal of International Money and Finance, 20, 249-272.

Del Monte, A., & Papagni, E. (2007). The determinants of corruption in Italy: Regional panel data analysis. European Journal of Political Economy, 23(2), 379-396.

Fosu, A. K. (2017). Governance and Development in Africa: A concise review. GDI Working Paper 2017-008. Manchester: The University of Manchester.

Fosu, A. K. (2001). Political instability and economic growth in developing economies: Some specification empirics. Economics Letters, 70(2), 289-294.

Gyimah-Brempong, K., & Traynor, T. L. (1999). Politi­cal instability, investment and economic growth in Sub-Saharan Africa. Journal of African Economies, 8(1), 52-86.

Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115, 53-74.

Kabumba I. (2005). Good governance and sustainable development in Africa: Meaning, relationship, problems and strategies. AAPAZ Zambia Paper.

Kao, C. (1999). Spurious regression and residual-based tests for cointegration in panel data. Journal of Econometrics, 90, 1-44.

Levin, A., & Lin, C. F. (1993). Unit root tests in panel data: Asymptotic and finite sample properties. Working paper, University of California, San Diego.

Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: Asymptotic and finite sample properties. Working Paper, University of California, San Diego.

Maddala, G. S., & Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61, 631-652.

Mahmoodi & Mahmoodi. (2014). Government expenditure-GDP nexus: Panel causality evidence. International Journal of Economy, Management and Social Sciences, 3(1), 37-42.

Mbaku, J. M. (1988). Political instability and economic development in Sub-Saharan Africa: Some recent evidence. Review of Black Political Econo­my, 17(1), 89-111.

Okafor, C. E., Smith, M., & Ujah, N. (2014). Kleptoc­racy, nepotism, kakistrocracy: Impact of corrup­tion in Sub-Saharan African countries. Interna­tional Journal of Economics and Accounting, 5(2), 97-115.

Pedroni, P. (2004). Panel cointegration: Asymptotic and finite sample properties of pooled tome series tests with an application to the PPP hypothesis. Econometrics Theory, 20, 597-625.

Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panel with multiple regressors. Oxford Bulletin of Economics and Statistics, 61, 653-678.

United Nations Development Programme (UNDP). (1997). Governance for sustainable human development. New York: United Nations Development Programme (UNDP).

United Nations Development Programme (UNDP). (1997b). Reconceptualising governance. Discussion Paper 2. New York, Management Development and Governance Division, Bureau for Policy and Programme Support, United Nations Development Programme (UNDP).




DOI: http://dx.doi.org/10.3968/10208

Refbacks

  • There are currently no refbacks.


Copyright (c) 2018 Canadian Social Science

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Reminder

  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

Online Submission: http://cscanada.org/index.php/css/submission/wizard

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.
  • We only use four mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: caooc@hotmail.com; office@cscanada.net; ccc@cscanada.net; ccc@cscanada.org

 Articles published in Canadian Social Science are licensed under Creative Commons Attribution 4.0 (CC-BY).

 

Canadian Social Science Editorial Office

Address: 1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.
Telephone: 1-514-558 6138 
Website: Http://www.cscanada.net; Http://www.cscanada.org 
E-mail:caooc@hotmail.com; office@cscanada.net

Copyright © Canadian Academy of Oriental and Occidental Culture