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

Nchofoung, Tii and Asongu, Simplice and Njamen Kengdo, Arsène and Achuo, Elvis (2021): Linear and non-linear effects of infrastructures on inclusive human development in Africa.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Infrastructure; Inclusive development: Africa
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; I - Health, Education, and Welfare > I0 - General; N - Economic History > N6 - Manufacturing and Construction > N67 - Africa ; Oceania; N - Economic History > N7 - Transport, Trade, Energy, Technology, and Other Services > N77 - Africa ; Oceania; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa

References

Ajakaiye, O., &Ncube, M. (2010). Infrastructure and economic development in Africa: An overview. Journal of African economies, 19(suppl_1), i3-i12.

AfDB (2018). African Infrastructures: Considerable Potential, But Limited Impact On Equitable Growth. African Economic Outlook 2018, Chapter 3.

Albala‐Bertrand, J. M., &Mamatzakis, E. C. (2004). The impact of public infrastructure on the productivity of the Chilean economy. Review of Development Economics, 8(2), 266-278.

Asongu, S. A. (2018). CO 2 emission thresholds for inclusive human development in sub-Saharan Africa. Environmental Science and Pollution Research, 25(26), 26005-26019.

Asongu, S. A., & Le Roux, S. (2017). Enhancing ICT for inclusive human development in Sub-Saharan Africa. Technological Forecasting and Social Change, 118, 44-54.

Asongu, S. A., & Leke, I. J. (2019). External flows and inclusive human development in sub-Saharan Africa. International Journal of Happiness and Development, 5(1), 33-56.

Asongu, S. A., &Nwachukwu, J. C. (2017). Not all that glitters is gold: ICT and inclusive human development in Sub-Saharan Africa. International Journal of Happiness and Development, 3(4), 303-322.

Asongu, S. A., & Nwachukwu, J. C. (2018). Educational quality thresholds in the diffusion of knowledge with mobile phones for inclusive human development in sub-Saharan Africa. Technological Forecasting and Social Change, 129, 164-172.

Asongu, S. A., & Odhiambo, N. M. (2019). Environmental degradation and inclusive human development in sub‐Saharan Africa. Sustainable Development, 27(1), 25-34.

Asongu, S. A., & Odhiambo, N. M. (2020). Governance, CO2 emissions and inclusive human development in sub-Saharan Africa. Energy Exploration & Exploitation, 38(1), 18-36.

Asongu, S. A., & Odhiambo, N. M. (2021). Social media and inclusive human development in Africa. Information Development, 37(2), 307-325.

Asongu, S. A., Le Roux, S., &Biekpe, N. (2017). Environmental degradation, ICT and inclusive development in Sub-Saharan Africa. Energy Policy, 111, 353-361.

Ayogu, M. (2007). Infrastructure and economic development in Africa: a review. Journal of African Economies, 16(suppl_1), 75-126.

Blimpo, M. P., Harding, R., & Wantchekon, L. (2013). Public investment in rural infrastructure: Some political economy considerations. Journal of African Economies, 22(suppl_2), ii57-ii83.

Bond, J. (2016). Infrastructure in Africa. Global journal of Emerging market Economies, 8(3), 309-333.

Calderón, C., & Servén, L. (2010). Infrastructure and economic development in Sub-Saharan Africa. Journal of African Economies, 19(suppl_1), i13-i87.

Carrus, G., Dadvand, P., & Sanesi, G. (2017). The role and value of urban forests and green infrastructure in promoting human health and wellbeing. In The Urban Forest (pp. 217-230). Springer, Cham.

Germaschewski, Y. (2020). Stabilization policy, infrastructure investment, and welfare in a small open economy. Economic Modelling, 84, 322-339.

Mohanty, A. K., Nayak, N. C., & Chatterjee, B. (2016). Does infrastructure affect human development? Evidences from Odisha, India. Journal of Infrastructure Development, 8(1), 1-26.

Musah, A., Sare, Y. A., & Ibrahim, M. (2019). Examining the threshold effects of inflation on economic growth in Ghana. Ghanaian Journal of Economics, 7(1), 5-23.

Nchofoung, T., Achuo, E., & Asongu, S. (2021). Resource rents and inclusive human development in developing countries. European Xtramile Centre of African Studies WP/21/025.

Njamen, A. A.K., Nchofoung, T., & Ntang, P. B. (2020). Effect of external debt on the level of infrastructure in Africa. Economics Bulletin, 40(4), 3349-3366.

Ogun, T. P. (2010, August). Infrastructure and poverty reduction: Implications for urban development in Nigeria. In Urban Forum (Vol. 21, No. 3, pp. 249-266). Springer Netherlands.

Tchamyou, V. S., (2019).The Role of Information Sharing in Modulating the Effect of Financial Access on Inequality . Journal of African Business, 20(3), 317-338.

Tchamyou, V. S. (2020). Education, lifelong learning, inequality and financial access: Evidence from African countries. Contemporary Social Science, 15(1), 7-25.

Tchamyou, V. S. (2021). Financial access, governance and the persistence of inequality in Africa: Mechanisms and policy instruments. Public Affairs, 21(2), e2201.

Tchamyou, V. S., Asongu, S. A., & Odhiambo, N. M. (2019b). The role of ICT in modulatingthe effect of education and lifelong learning on income inequality and economic growth in Africa. African Development Review, 31(3), 261-274.

Tchamyou, V. S., Erreygers, G., & Cassimon, D., (2019a). Inequality, ICT and Financial Accessin Africa, Technological Forecasting and Social Change, 139 (February), 169-184.