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The Growth Effects of the Bulging Economically Active Population in Sub‐Saharan Africa: Do Institutions Matter?

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  • Isaac Bonuedi
  • Kofi Kamasa
  • Elliot Boateng

Abstract

This paper examines the importance of good institutions in harnessing the growth effects of the bulging economically active population in sub‐Saharan Africa (SSA). The paper utilizes a panel dataset comprising 39 countries over the period 2002–13. Based on the system generalized method of moments estimator, this paper finds that an increase in the relative size of the working‐age population has no direct significant impact on growth, except through the presence of strong and high‐quality institutions. The paper also finds that control of corruption, rule of law and political stability are the specific aspects of institutions that matter the most in reaping the dividend. These results do not only highlight the primacy of strong institutions but also shed light on the key institutional pillars that need to be strengthened to rake in the positive effects of an increasing working age population on economic growth in SSA.

Suggested Citation

  • Isaac Bonuedi & Kofi Kamasa & Elliot Boateng, 2019. "The Growth Effects of the Bulging Economically Active Population in Sub‐Saharan Africa: Do Institutions Matter?," African Development Review, African Development Bank, vol. 31(1), pages 71-86, March.
    • Handle: RePEc:bla:afrdev:v:31:y:2019:i:1:p:71-86
    DOI: 10.1111/1467-8268.12364
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    Cited by:

    1. Gameli Adika, 2020. "Economic growth dynamics between resource‐rich and resource‐poor countries in sub‐Saharan Africa: The role of politics and institutions," African Development Review, African Development Bank, vol. 32(3), pages 303-315, September.
    2. Muhammad Tahir & Munshi Naser Ibne Afzal & Muhammad Asim Afridi & Imran Naseem & Bilal Bin Saeed, 2019. "Terrorism and its Determinants in the Sub‐Saharan Africa Region: Some New Insights," African Development Review, African Development Bank, vol. 31(3), pages 393-406, September.
    3. Olayemi M. Olabiyi, 2020. "Electoral participation and household food insecurity in sub‐Saharan Africa," African Development Review, African Development Bank, vol. 32(3), pages 392-403, September.
    4. Steve Yaw Sarpong & Murad A. Bein, 2021. "Effects of good governance, sustainable development and aid on quality of life: Evidence from sub‐saharan Africa," African Development Review, African Development Bank, vol. 33(1), pages 25-37, March.
    5. Grace Nkansa Asante & Kofi Kamasa & Myles Patrick Bartlett, 2022. "Foreign direct investment and economic growth nexus in ECOWAS: The leveraging effect of anti-corruption," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 14(2), pages 176-188.
    6. Boateng, Elliot & Agbola, Frank W. & Mahmood, Amir, 2021. "Foreign aid volatility and economic growth in Sub-Saharan Africa: Does institutional quality matter?," Economic Modelling, Elsevier, vol. 96(C), pages 111-127.

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