Institutions and Growth Volatility: The Case of Sub-Saharan African Countries

International Journal of Economics and Management Studies

© 2021 by SSRG - IJEMS Journal

Volume 8 Issue 10

Year of Publication : 2021

Authors : Yaya Aminou

10.14445/23939125/IJEMS-V8I10P103

How to Cite?

Yaya Aminou, "Institutions and Growth Volatility: The Case of Sub-Saharan African Countries," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 10, pp. 18-28, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I10P103

Abstract:

In the context of recurrent crises and attention to the resilience of economies, this paper contributes to the literature by analyzing the effect of institutional quality on growth volatility in Sub-Saharan Africa. It covers the period 1980-2017 for a sample of 44 sub-Saharan African countries. Using system GMM estimators, the results show that institutional quality has a negative effect on economic growth volatility in Sub-Saharan Africa. This suggests that better institutions reduce the growing volatility in Sub-Saharan Africa. Because of these results, improving the quality of institutions should be among the priorities of economic policy in Sub-Saharan African countries to strengthen the economies' resilience.

Keywords:

Institutions-democracy-growth volatility.

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