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Interconnections between Governance and Socioeconomic Conditions: Understanding Sub-Saharan African Challenges

Author

Listed:
  • Fisayo Fagbemi

    (Liège, Belgium)

  • Geraldine E. Nzeribe

    (Awka, Nigeria)

  • Tolulope T. Osinubi

    (Ile – Ife, Nigeria)

  • Simplice A. Asongu

    (Yaoundé, Cameroon)

Abstract
Given that challenges facing sub-Saharan African (SSA) countries on the issue of socioeconomic development have been identified as critical to strengthening the inherent link between governance and socioeconomic conditions, this study examines the interconnections between governance and SSA socioeconomic conditions. With a focus on 25 countries between 2005 and 2019, the analysis is based on Panel-Corrected Standard Error (PCSE) and System-GMM estimations, and panel causality test. Results show that SSA seems not to have the means of effective governance to spur improved socioeconomic conditions. Findings indicate that the pervasiveness of institutional problems in many SSA countries has been responsible for the poor socioeconomic condition in the region. Furthermore, it is equally found that governance quality and socioeconomic conditions are mutually reinforcing, suggesting that they influence each other. An improvement in socioeconomic conditions could result in better governance. On the other hand, the quality of governance is viewed as a vital ingredient in achieving needed socioeconomic development outcomes. Thus, it is suggested that there is need for SSA countries to streamline governing system towards engendering improved well-being. The introduction and implementation of transformative policies through effective governance are also necessary for ensuring critical structural changes and increased social service provision. Overall, there should be a proactive identification of ineffective policies and procedures by policymakers to enhance meaningful impact in the region.

Suggested Citation

  • Fisayo Fagbemi & Geraldine E. Nzeribe & Tolulope T. Osinubi & Simplice A. Asongu, 2021. "Interconnections between Governance and Socioeconomic Conditions: Understanding Sub-Saharan African Challenges," Working Papers 21/099, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:21/099
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    2. Flavia Massuga & Marcos Aurélio Larson & Marcos Roberto Kuhl & Sérgio Luis Dias Doliveira, 2024. "The influence of global governance on the sustainable performance of countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 28567-28589, November.
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    More about this item

    Keywords

    Governance quality; socioeconomic condition; economic development; System-GMM; Africa;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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