Good Governance and Economic Growth in Africa

Abstract

African countries face with the problem of good governance and steady economic growth for over period of time. Therefore, the paper aims to examine the good governance and economic growth for the 50 African countries for the period of 2002 to 2020 using the System GMM approach. The data were sourced from the World Development Indicators and World Governance Indicators (2020). The Empirical findings indicated that all the good governance indicators are positive and statistically significant in influencing the level of economic growth in the region, except the government effectiveness which is positive but statistically insignificant. Based on the findings, African countries should provide extensive policies that promote good governance in the region as the region is the backward in terms of good governance compare with other regions in the world. More so, governments in the region should strengthen their political will through transparency and accountability in all aspect of government activities which will reduce the level of political unrest and promote regulatory quality in the region and propel growth