Suchergebnisse

In this study, the efficacy of globalization in influencing income growth within the Sub-Saharan Africa (SSA) from 1982 to 2020 is being examined. The "Konjunkturforschungsstelle Globalization Index" (KOFGI) was used to measure globalization at the overall, economic, social, and political level, while income growth was captured using the growth rate of gross national income per capita. The data employed in the analysis were gotten from World Bank and KOFGI database. The analysis follows a sequential order of unit root test based on the augmented Dickey-Fuller, autoregressive distributed lag (ARDL) bounds test for cointegration, and error correction model. The unit root test revealed that the order of integration of the variables were mixed at levels and first difference. The bounds test showcased that all the dimensions of globalization exhibited long-run association with income growth. The short-run result indicated that globalization wielded a negative and significant effect on income growth. A unit percent increase in globalization put forth a 1.3818% decrease in income growth. In the long-run, globalization however exerted a positive but insignificant sway on income growth in the SSA. The implication of this is that though globalization poses a short-run negative impact on income growth, the SSA can move along the learning curve to derive some long-term benefits that emanate from global interactions. It becomes pertinent for the SSA to see globalization as a long-term avenue for propelling income growth, bearing in mind that the short-run negative effect can be corrected periodically as the economy moves along the learning curve of globalization.

In this study, we explored how governance could influence economic misery. Consideration is made of 16 West African countries from 2005 through 2020. The governance indicators used in the study include voice and accountability; political stability and absence of violence/terrorism; government effectiveness; regulatory quality; the rule of law; and control of corruption. Barro's misery index was computed and used in this study. The analysis used the pooled ordinary least squares (OLS), fixed and random effect models, and the Granger causality test. The Granger causality test indicated that unidirectional causality runs from government effectiveness, political stability and absence of violence/terrorism, and regulatory quality to economic misery. For the pooled OLS, only voice and accountability aided in reducing economic pain in a significant manner, while the rule of law aggravated financial distress. In the Fixed effect model, none of the governance indicators could significantly influence economic misery, while in the Random effect model, voice and accountability with regulatory quality significantly reduced financial discomfort. Government effectiveness has not in any way exerted a significant influence on economic misery within the study period. Other variables that substantially influenced economic distress within West Africa were trade liberalisation and credit to the private sector, as they both significantly reduced economic misery. The weak governance indicators show poor institutional quality intensifies economic pain within the West African region.