GOVERNANCE QUALITY AND ECONOMIC GROWTH: EVIDENCE FROM SELECTED COUNTRIES IN SUB-SAHARAN AFRICA

Abstract

Despite copious natural resources and economic potential, some sub-Saharan African countries continue to experience unstable and low economic growth due to weak governance institutions. This study examines the effects of the quality of governance on the economic growth of countries in the chosen sub-Saharan Africa region. The study employs the secondary data that are in the World Bank databases and the Worldwide Governance Indicators that apply to six states, including Nigeria, Ghana, Kenya, Tanzania, South Africa, and Zimbabwe, between the years 1996 and 2023. The empirical analysis is done with panel least squares regression procedures. The findings indicate that the quality of regulatory aspects (β = 2.1996, p = 0.029) positively and significantly influences the growth of GDP in the sampled countries. However, other governance indicators, including control of corruption, political stability, and rule of law, show weak or statistically non-material relationships with economic growth. The study concludes that the key to sustainable economic growth in the region is a regulatory framework and proper implementation of the policy. Government is thus urged to focus on proper regulation, open governance, and institutional reinforcement to draw investment, enhance productivity, and sustain the growth of the economy.