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Empirical Study of the Impact of Governance on Economic Structural Change: Evidence from Sub-Saharan African Countries Afolabi Tunde Ahmed, Tsimisaraka Raymondo Sandra Marcelline & Sabi Couscous Mouhamadou Nazirou

Empirical Study of the Impact of Governance on Economic Structural Change: Evidence from Sub-Saharan African Countries

Author (s)

Afolabi Tunde Ahmed, Tsimisaraka Raymondo Sandra  Marcelline & Sabi Couscous Mouhamadou Nazirou

Abstract

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In this paper, we attempted to test whether the governance has a positive impact on the structural change in SSA or not.  For the cause, we used the six indexes of the Institutional Quality namely Government Effectiveness, Rule of Law, Control of Corruption, Political Stability and Absence of Violence/Terrorism, Regulatory Quality, Voice of Accountability to see their impact on the structural change in SSA. We use 46 SSA countries from worldwide governance indicator of World Bank from 1996 to 2016 in a Generalized Method of Moment and Generalized Least Square regressions. The results show that only the Government Effectiveness is positively affecting the value added (proxy of structural change) of three sectors (agriculture, industry and service) of the SSA economies.   Some affect positively one sector and negatively another sector, while the rest are insignificant for one sector and negative for other as example. Our results show that more efforts need to be done for the betterment of the institutional quality considering each sector’s particularity.

 Keywords: Structural change, Growth, SSA, Governance, Value Added, GLS, GMM.

 

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Title:Empirical Study of the Impact of Governance on Economic Structural Change: Evidence from Sub-Saharan African Countries
Author:Afolabi Tunde Ahmed, Tsimisaraka Raymondo Sandra  Marcelline & Sabi Couscous Mouhamadou Nazirou
Journal Name:International Journal of Science and Business
Website:ijsab.com
ISSN:ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI:https://doi.org/10.5281/zenodo.5109243
Media:Online
Volume:5
Issue:8
Acceptance Date:12/07/2021
Date of Publication:16/07/2021
PDF URL:https://ijsab.com/wp-content/uploads/797.pdf
Free download:Available
Page:260-277
First Page:260
Last Page:277
Paper Type:Research paper
Current Status:Published

 

Cite This Article:

Afolabi Tunde Ahmed, Tsimisaraka Raymondo Sandra  Marcelline & Sabi Couscous Mouhamadou Nazirou (2021). Empirical Study of the Impact of Governance on Economic Structural Change: Evidence from Sub-Saharan African Countries. International Journal of Science and Business, 5(8), 260-277. doi: https://doi.org/10.5281/zenodo.5109243

Retrieved from https://ijsab.com/wp-content/uploads/797.pdf

 

About Author (s)

Afolabi Tunde Ahmed, University of International Business and Economics (UIBE), Beijing, China. Email: sirdanielstro12@yahoo.fr

Tsimisaraka Raymondo Sandra  Marcelline (corresponding author), University of International Business and Economics (UIBE), Beijing, China.  Email: raymondosandra@163.com

Sabi Couscous Mouhamadou Nazirou, Zhongnan University of Economics and Law, China. Email:naziroucouscous@gmail.com

 

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DOI: https://doi.org/10.5281/zenodo.5109243

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Does Foreign Aid Influence Corruption? New Evidence in East Africa Community Member Countries Suleiman Malik Faki & Fuzhong Chen

Does Foreign Aid Influence Corruption? New Evidence in East Africa Community Member Countries

Author (s)

Suleiman Malik Faki & Fuzhong Chen

Abstract

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The key objective in this paper is to examine the foreign aid impact on corruption in East Africa Community Member countries. The paper employed Pooled Ordinary Least Square (Pooled OLS), Random Effect (RE) and Fixed Effect (FE) approach to find out the external aid effects on corruption. The study used panel data covering from the year from 1996 to 2017 for 5 EAC member nations. The study findings revealed that foreign aid flow has reduced impact on the level of corruption in EAC nations. Based on the findings which found that aid flows reduce the level of corruption in EAC member countries, it is suggested that cooperation between donor countries should be strengthen when allocate aid and through attaching conditions among other things which help to improve governance and institutional framework. In addition, the allocation of aid to the poor countries should be based on selective approach in such way that major conditions for a nation to meet the requirements for aid should be institutional quality reforms.

 Keywords: Aid, Corruption, Governance, Development, Developing countries.

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Title:Does Foreign Aid Influence Corruption? New Evidence in East Africa Community Member Countries
Author:Suleiman Malik Faki & Fuzhong Chen
Journal Name:International Journal of Science and Business
Website:ijsab.com
ISSN:ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI:https://doi.org/10.5281/zenodo.4534355
Media:Online
Volume:5
Issue:4
Acceptance Date:09/02/2021
Date of Publication:11/02/2021
PDF URL:https://ijsab.com/wp-content/uploads/705.pdf
Free download:Available
Page:46-58
First Page:46
Last Page:58
Paper Type:Research Paper
Current Status:Published

 

Cite This Article:

Suleiman Malik Faki & Fuzhong Chen (2021). Does Foreign Aid Influence Corruption? New Evidence in East Africa Community Member Countries. International Journal of Science and Business, 5(4), 46-58. doi: https://doi.org/10.5281/zenodo.4534355

Retrieved from https://ijsab.com/wp-content/uploads/705.pdf

 

 

About Author (s)

Suleiman Malik Faki (corresponding author), School of International Trade and Economics, University of International Business and Economics, China.

Prof. Fuzhong Chen, School of International Trade and Economics, University of International Business and Economics, China.

 

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DOI: https://doi.org/10.5281/zenodo.4534355