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The economic effects of infrastructure investment on industrial sector growth in Sub-Sahara Africa: a disaggregated system-GMM approach

Author

Listed:
  • Sunday Anderu Keji
  • Josue Mbonigaba
  • Gbenga Wilfred Akinola

Abstract

Investment in economically inclined infrastructure is pertinent to industrial sector growth in Sub-Sahara Africa (SSA), especially during this period of financial belt-tightening recovery due to the recent global pandemic. Findings suggest a dilapidated infrastructure spread across SSA, which has mired productivity growth, hence slow industrial sector growth. This study fills a vacuum in the literature by investigating the economic effects of infrastructure investment on industrial sector growth in SSA using disaggregated system-GMM approach. Diverse significant effects from various types of infrastructural tech on industrial growth across sub-regional countries were unravelled. Similarly, post estimations analysis via robust Arellano-Bond Autocorrelation and Hansen tests were adopted to establish the absence autocorrelation. The study uniquely disaggregated system GMM to provide valuable insights to policymakers. Hence, sub-regional countries should draft more policy support to prioritise economically motivated factor inputs such as information techs, access to energy, transport and water resources to expedite industrial sector growth.

Suggested Citation

  • Sunday Anderu Keji & Josue Mbonigaba & Gbenga Wilfred Akinola, 2025. "The economic effects of infrastructure investment on industrial sector growth in Sub-Sahara Africa: a disaggregated system-GMM approach," International Journal of Critical Infrastructures, Inderscience Enterprises Ltd, vol. 21(1), pages 24-43.
    • Handle: RePEc:ids:ijcist:v:21:y:2025:i:1:p:24-43
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