Effect of Government Effectiveness on Economic Growth: Evidence from Sub-Saharan Africa

Abstract

The absence of good governance has been causing the stagnant economic growth of sub-Saharan Africa. Government effectiveness is one of the indicators of good governance and is considered a paramount condition for economic growth. The main objective of this study was to investigate the effect of government effectiveness on economic growth using panel data from 40 sub-Saharan African countries spanning from 2008 to 2021. After conducting the Hausman Model specification test between random and fixed effects models, the fixed effects regression model was employed. The main finding of this study shows that government effectiveness positively and significantly influences economic growth in sub-Saharan Africa. Sub-Saharan countries are recommended to improve their governance and administrative efficiency for the betterment of economic growth and prosperity.