DEMOCRACY AND ECONOMIC DEVELOPMENT IN AFRICA: A FRIEND OR FOE?
Semyalo Moses, Xu Yuanwang
The study assessed the impact of democracy on economic development in Africa from 1996 to 2017 for a panel study of 50 African countries. The study employed panel methodologies such as panel stepwise regression, generalized linear model, and Arellano-Bond dynamic panel data GMM (two-step) and censored Tobit regression methods for its robustness inference. The study found a negative and strong statistically significant relationship between democracy and economic development in Africa. Whereas the rule of law negatively relates to economic growth and voice and accountability also relates at a statistical significance level of 1% across all the methods used for the data analysis. Ä°n the wake to achieve higher economic development, one variable critically showed promising thus human development index. The human development index encompasses a composite measure of life expectancy at birth, per capita income indicators, and level of education in every country.
Keywords: Democracy; Economic development; Rule of law; Voice and Accountability; Corruption control
Journal Name :
EPRA International Journal of Economic and Business Review(JEBR)
Published on : 2021-06-04