Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa

Asongu, Simplice and Odhiambo, Nicholas (2019): Income Levels, Governance and Inclusive Human Development in Sub-Saharan Africa. Forthcoming in: Applied Research in Quality of Life

Abstract

This study examines how income-driven governance affects inclusive human development in Sub-Saharan Africa with data for the period 2000-2012. The empirical evidence is based on the Generalised Method of Moments (GMM) and Tobit regressions. Nine bundled and unbundled concepts of governance are used: political (voice & accountability and political stability/no violence), economic (government effectiveness and regulation quality) and institutional (corruption-control and the rule of law) governances. The main finding is that ‘middle income’-driven governance has a higher effect on inclusive human development than ‘low income’-driven governance. Policy implications are discussed in the light of: (i) the contemporary relevance of findings; (ii) the pivotal role of a higher income level in the post-2015 sustainable development agenda; and (iii) inconsistent strands in the literature and in foreign aid policies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Inclusive development; Income levels; Governance; Africa
• Subjects: D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions; I - Health, Education, and Welfare > I1 - Health > I10 - General; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I32 - Measurement and Analysis of Poverty; K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K40 - General; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa

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