Does Good Governance Matter more for Energy Investment? Evidence from Sub-Saharan Africa

2019 ◽  
Vol 28 (6) ◽  
pp. i16-i40 ◽  
Author(s):  
Amadou N R Sy ◽  
Mariama Sow
Keyword(s):  
Good Governance ◽  
Private Investment ◽  
Political Stability ◽  
Sub Saharan Africa ◽  
Energy Investment ◽  
Chinese Investment ◽  
Governance Indicators ◽  
Resource Rents ◽  
Sub Saharan ◽  
World Governance Indicators

Abstract This paper examines the relationship between three global priorities: access to energy, good governance, and financing for development. Using the World Governance Indicators (WGI), it finds that while governance matters for raising domestic revenues, its effect on external financing sources is mixed. Good governance, except for political stability, does not appear to matter much for attracting foreign direct investment (FDI) to oil exporting countries but is positively associated with FDI to oil importing countries. In contrast, official development finance (ODA) is positively associated with good governance. The bigger bang for improving governance is at home in the form of increased tax revenues (excluding resource rents). The paper also uses the newly developed Regulatory Indicators for Sustainable Energy (RISE) and finds that improved governance is associated with increased private investment and ODA to the energy sector. In contrast, Chinese investment to the sector appears not to be responsive to changes in governance.

scholarly journals The mobile phone as an argument for good governance in sub-Saharan Africa

2019 ◽  
Vol 32 (4) ◽  
pp. 897-920 ◽  
Author(s):  
Simplice Asongu ◽  
Sara le Roux ◽  
Jacinta C. Nwachukwu ◽  
Chris Pyke
Keyword(s):  
Mobile Phone ◽  
Mobile Phones ◽  
Good Governance ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
Empirical Inquiry ◽  
Governance Indicators ◽  
Sub Saharan ◽  
Mobile Phone Usage

Purpose The purpose of this paper is to present theoretical and empirical arguments for the role of mobile telephony in promoting good governance in 47 sub-Saharan African countries for the period 2000–2012. Design/methodology/approach The empirical inquiry uses an endogeneity-robust GMM approach with forward orthogonal deviations to analyze the linkage between mobile phone usage and the variation in three broad governance categories – political, economic and institutional. Findings Three key findings are established: first, in terms of individual governance indicators, mobile phones consistently stimulated good governance by the same magnitude, with the exception of the effect on the regulation component of economic governance. Second, when indicators are combined, the effect of mobile phones on general governance is three times higher than that on the institutional governance category. Third, countries with lower levels of governance indicators are catching-up with their counterparts with more advanced dynamics. Originality/value The study makes both theoretical and empirical contributions by highlighting the importance of various combinations of governance indicators and their responsiveness to mobile phone usage.

Ilusi Good Governance

2018 ◽  
Author(s):  
Shohibul Anshor Siregar
Keyword(s):  
Good Governance ◽  
Sustainable Growth ◽  
Sub Saharan Africa ◽  
Sub Saharan

Sebelum menjadi wacana internasional yang secara otoritatif “dipaksakan” ke seluruh dunia pada dekade 1990-an, terminologi Good Governance (GG) pertama kali diperkenalkan oleh Bank Dunia (BD) dalam publikasinya (1989) berjudul Sub Saharan Africa: From Crisis to Sustainable Growth. BD memang sangat agresif mengkampanyekan konsep GG, bahkan memaksa dilakukannya penyesuaian-penyesuaian kelembagaan sebagai prasyarat mendapatkan bantuan pembangunan. Setiap negara wajib tunduk pada kriteria yang dibuat, dan para konsultan ditugasi untuk memperlancar proses itu.

scholarly journals Enhancing governance for environmental sustainability in sub-Saharan Africa

2020 ◽  
pp. 014459871990065 ◽  
Author(s):  
Simplice A Asongu ◽  
Nicholas M Odhiambo
Keyword(s):  
Environmental Sustainability ◽  
Generalized Method Of Moments ◽  
Political Stability ◽  
Sub Saharan Africa ◽  
Economic Governance ◽  
Institutional Governance ◽  
Government Effectiveness ◽  
Sub Saharan ◽  
Political Economic ◽  
Political Governance

This study assesses whether improving governance standards affects environmental quality in 44 countries in sub-Saharan Africa for the period 2000–2012. The empirical evidence is based on generalized method of moments. Bundled and unbundled governance dynamics are used, notably: (i) political governance (consisting of political stability and “voice and accountability”); (ii) economic governance (entailing government effectiveness and regulation quality), (iii) institutional governance (represented by the rule of law and corruption-control); and (iv) general governance (encompassing political, economic, and institutional governance dynamics). The following hypotheses are tested: (i) Hypothesis 1 ( improving political governance is negatively related to carbon dioxide (CO2) emissions); (ii) Hypothesis 2 ( increasing economic governance is negatively related to CO2 emissions); and (iii) Hypothesis 3 ( enhancing institutional governance is negatively related to CO2 emissions). Results of the tested hypotheses show that the validity of Hypothesis 3 cannot be determined based on the results; Hypothesis 2 is not valid, while Hypothesis 1 is partially not valid. The main policy implication is that governance standards need to be further improved in order for government quality to generate the expected unfavorable effects on CO2 emissions.

scholarly journals Foreign Direct Investment - Growth Linkage in Sub-Saharan Africa: Is Governance a Mediating Factor?

2019 ◽  
Vol 6 (2) ◽  
pp. 111-129
Author(s):  
Fisayo Fagbemi ◽  
Kehinde Mary Bello
Keyword(s):  
Economic Growth ◽  
Fixed Effects ◽  
Political Stability ◽  
Business Environment ◽  
Mediating Effect ◽  
Sub Saharan Africa ◽  
Policy Framework ◽  
Investment Efficiency ◽  
African Countries ◽  
Sub Saharan

In sub – Saharan Africa, weak institutions and the rising concern for improved business environment offer considerable leverage for enhancing the effectiveness of institutional framework, capital inflows, and public investment efficiency. These have put SSA in the global spotlight in recent times. Hence, the study examines the mediating effect of governance on FDI – growth nexus in 35 SSA countries between 2002 and 2017 using panel data techniques (Pooled OLS, Fixed Effects, and Panel-Corrected Standard Error’ (PCSE) estimation) and the Dynamic One – Step Difference and System GMM. Results indicate that control of corruption, political stability and regulatory quality, including governance composite index, have a positive and significant effect on economic growth, suggesting that institutions have a salutary impact on SSA economies. The findings further show that FDI inflows adversely influence growth owing to insufficient absorptive capacity that could enhance FDI effectiveness in the region. More importantly, the pervasiveness of poor governance in SSA is identified as a critical case that undermines the development of the nexus between FDI and economic growth. Thus, the study suggests that FDI – growth linkage would be enhanced by promoting a strong institutional environment that offers a good mechanism for attaining the actual FDI spillover potential through a policy framework that points the path towards cost-effective measures in SSA. Also, there should be core investment policies across African countries that would induce the private sector in consolidating government efforts and resources aimed at improving international competitiveness by diversifying the region’s economies away from a protracted commodity – based.

Reducing corruption and bribery in Africa as a target of the sustainable development goals: applying indicators for assessing performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kempe Ronald Hope, Sr.
Keyword(s):  
Sustainable Development ◽  
Sustainable Development Goals ◽  
Good Governance ◽  
Sub Saharan Africa ◽  
Ethical Behaviour ◽  
Content Type ◽  
The Sustainable Development ◽  
Development Goals ◽  
Sub Saharan ◽  
Illegal Activities

Purpose The purpose of this paper is to assess African performance for substantially reducing all forms of corruption and bribery on the continent by 2030, through the indicators for achieving Target 16.5 of the sustainable development goals (SDGs). Design/methodology/approach Drawing on the available and accessible relevant data from credible sources, this work quantifies, outlines and analyses the relationship between corruption/bribery and sustainable development as it applies primarily to sub-Saharan Africa; assesses the trends in the region through the official indicators for achieving Target 16.5 of the SDGs; and recommends other indicators for assessing ethical behaviour in African political, administrative and business leadership and institutions for achieving sustainable development and improved ethical performance towards significant reductions in all manifestations of bribery and corruption on the continent by 2030. Findings Corruption and bribery are found to affect all SDG-related sectors, undermining development outcomes and severely compromising efforts to achieve the SDGs in Africa. Consequently, prioritising corruption reduction including from money laundering, bribery and other illegal activities is a necessary requirement for achieving sustainable development, good governance, building effective and inclusive institutions as required by SDG 16, and funding the achievement of the SDGs. Originality/value The main value of the paper is the insights it provides through the very comprehensive compilation of statistical information that quantifies, and with analysis, the corruption/bribery avenues and the resultant deleterious effects on sustainable development in Africa.

E-Government Strategies in Sub-Saharan Africa

2014 ◽  
pp. 297-312 ◽  
Author(s):  
Stephen M. Mutula ◽  
Gbolahan Olasina
Keyword(s):  
Human Rights ◽  
Best Practices ◽  
Service Delivery ◽  
Good Governance ◽  
Sub Saharan Africa ◽  
Project Delivery ◽  
Implementation Approach ◽  
Sub Saharan

E-government if well implemented has the potential to reduce administrative bureaucracy and enhance development and service delivery. This chapter discusses strategies of e-government implementation in Sub-Saharan Africa and the implications for good governance, democracy, respect for human rights, accountability, integrity, and transparency. E-government in Sub-Saharan Africa is being undertaken in different administrative contexts and rationalities such as the need for reform, efficiency, and citizen-focus. An e-government implementation approach that facilitates and engenders the sharing of best practices, experiences, methods, and standards while reducing turnaround times and cost in project delivery would be desirable. This chapter is underpinned by UN e-government framework.

The nexus between economic institutions and unemployment: evidence from sub-Saharan Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdullahi Abdulhakeem Kilishi ◽  
Hammed Adesola Adebowale ◽  
Sodiq Abiodun Oladipupo
Keyword(s):  
Panel Data ◽  
Private Investment ◽  
Developed Countries ◽  
Sub Saharan Africa ◽  
Economic Institutions ◽  
Male And Female ◽  
Content Type ◽  
Long Run ◽  
Sub Saharan ◽  
Ssa Countries

Purpose This paper aims to investigate the nexus between economic institutions (EI) and unemployment in sub-Saharan African (SSA) countries. Specifically, the paper examines the impact of aggregate EI and ten different components of institutions on total, male and female unemployment in SSA. Design/methodology/approach The paper used unbalanced panel data of 37 SSA countries covering the period between 1995 and 2018. A dynamic heterogenous panel data model is specified for the study. Two alternative estimation techniques of dynamic fixed effect and pool mean group methods were used to estimate the models. The choice of appropriate method is based on Hausman specification test. Findings The findings reveal that aggregate EI and institutions related to the monetary system, trade flows, government spending and fiscal process significantly lead to less unemployment in the long-run. However, there is no evidence of a significant relationship between EI and unemployment in the short-run. These findings are consistent for total, male and female unemployment, respectively. Practical implications To reduce unemployment significantly in the long run, policymakers in SSA need to build more market-friendly institutions that will incentivize private investment, allow free movement of labour and goods, as well as guarantee a stable macroeconomic environment and efficient fiscal system. Originality/value Most of the existing studies focused on the influence of labour market institutions on unemployment ignoring the effects of other forms of institutions. While available studies on the link between institutions and unemployment used either OECD or other developed countries sample, with scanty evidence from Africa. However, the effects of EI could vary across regions. Thus, generalizing the findings from developed countries for SSA countries and other developing countries may be misleading. Hence, this paper contributes to the existing literature by examining the nexus between different types of EI and unemployment using the SSA sample.

“Does the poor matter” in pro-poor driven sub-Saharan African cities? towards progressive and inclusive pro-poor tourism

2019 ◽  
Vol 5 (3) ◽  
pp. 392-411 ◽  
Author(s):  
Regis Musavengane ◽  
Pius Siakwah ◽  
Llewellyn Leonard
Keyword(s):  
Sustainable Development ◽  
Good Governance ◽  
Urban Tourism ◽  
Sub Saharan Africa ◽  
African Countries ◽  
Content Type ◽  
African Cities ◽  
The Poor ◽  
Sub Saharan ◽  
The Impact

Purpose The purpose of this paper is to question the extent to which Sub-Saharan African cities are progressing towards promoting pro-poor economies through pro-poor tourism (PPT). It specifically examines how African cities are resilient towards attaining sustainable urban tourism destinations in light of high urbanization. Design/methodology/approach The methodological framework is interpretive in nature and qualitative in an operational form. It uses meta-synthesis to evaluate the causal relationships observed within Sub-Saharan African pro-poor economies to enhance PPT approaches, using Accra, Ghana, Johannesburg, South Africa, and Harare, Zimbabwe, as case studies. Findings Tourism development in Sub-Saharan Africa has been dominantly underpinned by neoliberal development strategies which threaten the sustainability of tourism in African cities. Research limitations/implications The study is limited to three Sub-Saharan African countries. Further studies may need to be done in other developing countries. Practical implications It argues for good governance through sustainability institutionalization which strengthens the regulative mechanisms, processes and organizational culture. Inclusive tourism approaches that are resilient-centered have the potential to promote urban tourism in Sub-Saharan African cities. These findings contribute to the building of strong and inclusive Institutions for Sustainable Development in the Sub-Saharan African cities to alleviate poverty. Social implications These findings contribute to the building of strong and inclusive institutions for sustainable development in the Sub-Saharan African cities to alleviate poverty. Originality/value The “poor” are always within the communities, and it takes a community to minimise the impact of poverty among the populace. The study is conducted at a pertinent time when most African government’s development policies are pro-poor driven. Though African cities provide opportunities of growth, they are regarded as centres of high inequality.

Information and Communication Technology and Good Governance in Africa

2011 ◽  
pp. 1026-1034
Author(s):  
G. Onu
Keyword(s):  
Information And Communication Technology ◽  
Communication Technology ◽  
Good Governance ◽  
Sub Saharan Africa ◽  
Paradigm Shifts ◽  
Whole Process ◽  
The World ◽  
Governance Process ◽  
Information And Communication ◽  
Sub Saharan

The 20th and 21st centuries have witnessed major paradigm shifts in the conceptualization of development and governance. These phenomena are aided and propelled by a new “network intelligence” consummated in the introduction of information and communication technology (ICT). The world has also witnessed a reinvention of the whole process of governance that has impacted society in various ways. Through the Internet and digital connectivity, today’s world has come to be closer than ever before. Efficiency and processes of governance have been improved through faster information flow in the governance chain. Bottlenecks and cost of labor have been reduced across the world. Furthermore, ICT has opened new possibilities, improved transparency and access to information as well as partnership and collaboration, leading to improved relationships between the citizen and state. While Europe and North America, as well as some countries of Asia and the pacific, have taken advantage of this development to improve their economies and governance process, Ningo (1999) observes that sub-Saharan Africa has remained either passive or in the periphery, often reduced to a consumer for reasons related to its history or its system of governance—or lack of one. This has led to a yawning digital divide (especially between Africa and developed states of the world. What led to this divide and how can Africa, then, benefit from this revolution? What are the obstacles?

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