IMF Working Papers Volume 2019 Issue 001: A Governance Dividend for Sub-Saharan Africa? (2019)

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A Governance Dividend for Sub-Saharan Africa?

Author:

Amine Hammadi

Amine Hammadinull

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Marshall Mills

Marshall Mills
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https://orcid.org/0000-0003-4809-6446

Nelson Sobrinho

Nelson Sobrinho
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Mr. Vimal V Thakoor

Mr. Vimal V Thakoor
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, and

Ricardo Velloso

Ricardo Velloso
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Series:: IMF Working Papers

Volume/Issue:: Volume 2019: Issue 001

Publication Date:: 11 Jan 2019

DOI:: https://doi.org/10.5089/9781484354872.001

ISBN:: 9781484354872

ISSN:: 1018-5941

Pages:: 43

Keywords:: WP; significance level; terms of trade; null hypothesis; Corruption; Governance; Institutions; Economic Growth; corruption perception; governance indicator; government effectiveness; governance × SSA; governance × LAC; governance channel; Inflation; Personal income; Estimation techniques; Sub-Saharan Africa; Global

Legal-disclaimer:: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Series:: IMF Working Papers

Volume/Issue:: Volume 2019: Issue 001

Language:: English

Publication Date:: 11 Jan 2019

DOI:: https://doi.org/10.5089/9781484354872.001

ISBN:: 9781484354872

ISSN:: 1018-5941

Pages:: 43

Keywords:: WP; significance level; terms of trade; null hypothesis; Corruption; Governance; Institutions; Economic Growth; corruption perception; governance indicator; government effectiveness; governance × SSA; governance × LAC; governance channel; Inflation; Personal income; Estimation techniques; Sub-Saharan Africa; Global

Legal-disclaimer:: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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Countries in Sub-Saharan Africa (SSA) tend to lag those in most other regions in terms of governance and perceptions of corruption. Weak governance undermines economic performance through various channels, including deficiencies in government functions and distortions to economic incentives. It thus stands to reason that SSA countries could strengthen their economic performance by improving governance and reducing corruption. This paper estimates that strengthening governance and mitigating corruption in the region could be associated with large growth dividends in the long run. While the process would take considerable time and effort, moving the average SSA country governance level to the global average could increase the region’s GDP per capita growth by about 1-2 percentage points.

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IMF Working Papers

ISSN:: 1018-5941

Publisher:: International Monetary Fund

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