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Linear and non-linear effects of infrastructures on inclusive human development in Africa

Author

Listed:
  • Nchofoung, Tii
  • Asongu, Simplice
  • Njamen Kengdo, Arsène
  • Achuo, Elvis
Abstract
The objectives of this paper are to verify the linear and the non-linear effects of infrastructural development on inclusive human development in Africa. The results of the system GMM estimations show a positive effect of infrastructural development on inclusive development across all the infrastructural development indexes employed, except the ICT infrastructural composite index which presents an insignificant negative effect. Besides, a non-linear effect of infrastructures on inclusive development was established across all the infrastructure indicators except for the ICT indicator. Negative thresholds for complementary policies are established for the African Infrastructure Development Index (AIDI) and the transport index while positive thresholds are apparent for the electricity index and the water and sanitation infrastructure index (WSS). Accordingly, in order to sustain the positive incidence of the AIDI and transport index on human development, complementary policies should be engaged to avoid an overall negative effect on human development when the indexes are respectively, 31.12% and 25.56%. In the same vein, the electricity index and WSSI should exceed critical levels of respectively 49.79% and 41.92%, to engender an overall positive effect on inclusive human development.

Suggested Citation

  • Nchofoung, Tii & Asongu, Simplice & Njamen Kengdo, Arsène & Achuo, Elvis, 2021. "Linear and non-linear effects of infrastructures on inclusive human development in Africa," MPRA Paper 110614, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:110614
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    More about this item

    Keywords

    Infrastructure; Inclusive development: Africa;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I0 - Health, Education, and Welfare - - General
    • N67 - Economic History - - Manufacturing and Construction - - - Africa; Oceania
    • N77 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Africa; Oceania
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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