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Core infrastructure and industrial performance in Africa: Do institutions matter?

Author

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  • Ekundayo P. Mesagan

    (University of Lagos)

  • Mustapha O. Bello

    (University of Lagos)

Abstract

The study investigates the role of institution in the nexus between core infrastructure and industrial performance in Africa. In this study, we select 25 African economies and data cover the period of 1996–2016. To conduct the panel analysis, we use variables such as manufacturing value added per capita to proxy industrial performance and employ the principal component analysis to generate core infrastructure index, as well as institution index. Using the fixed effect model, we find that core infrastructure has a positive but insignificant impact on industrial performance in the selected African countries. However, when we interact infrastructure with institution, results suggest that infrastructure has a positive and significant effect on industrial performance, alluding to the fact that institution is very important in making infrastructure to enhance industrial performance in Africa. Hence, African governments should formulate a sound industrial policy and standardise regulatory quality to boost industrial performance.

Suggested Citation

  • Ekundayo P. Mesagan & Mustapha O. Bello, 2018. "Core infrastructure and industrial performance in Africa: Do institutions matter?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 65(4), pages 539-562, December.
    • Handle: RePEc:spr:inrvec:v:65:y:2018:i:4:d:10.1007_s12232-018-0314-y
    DOI: 10.1007/s12232-018-0314-y
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    Cited by:

    1. Wasiu Adamson, Temitope & Adebayo Ajisafe, Rufus & Omobolanle Yussuff, Rukayat, 2022. "Inclusive Growth In Sub-Saharan Africa: Does Sectoral Foreign Aid Matter?," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 9(2), pages 97-128, June.
    2. Ekundayo P. Mesagan & Titilope C. Adewuyi & Olugbenga Olaoye, 2022. "Corporate Finance, Industrial Performance and Environment in Africa: Lessons for Policy," Working Papers of the African Governance and Development Institute. 22/026, African Governance and Development Institute..
    3. Ismaila Akanni Yusuf & Mohammed Bashir Salaudeen & Hope Agbonrofo, 2021. "Social and Economic Drivers of Stock Market Performance in Nigeria," Journal of Economic Impact, Science Impact Publishers, vol. 3(3), pages 137-143.
    4. Yusuf, Ismaila Akanni & Mesagan, Ekundayo Peter & Amadi, Agatha Nkem, 2020. "Effect of financial deepening on stock market returns: The case of military and democratic post-SAP regimes in Nigeria," BizEcons Quarterly, Strides Educational Foundation, vol. 6, pages 3-21.
    5. Mesagan, Ekundayo Peter & Eregha, Perekunah Bright, 2018. "Political Economy of Oil Resources Management in Nigeria: Lessons from Other Countries," MPRA Paper 95667, University Library of Munich, Germany, revised 15 Aug 2019.
    6. Mesagan, Ekundayo & Adenuga , Juliet, 2020. "Effects of Oil Resource Endowment, Natural Gas and Agriculture Output: Policy Options for Inclusive Growth," BizEcons Quarterly, Strides Educational Foundation, vol. 8, pages 15-34.
    7. Ekundayo Peter Mesagan & Xuan Vinh Vo & Precious Muhammed Emmanuel, 2023. "The technological role in the growth-enhancing financial development: evidence from African nations," Economic Change and Restructuring, Springer, vol. 56(1), pages 657-680, February.
    8. Mesagan, Ekundayo Peter & Charles, Ayobola Olufolake & Vo, Xuan Vinh, 2023. "The relevance of resource wealth in output growth and industrial development in Africa," Resources Policy, Elsevier, vol. 82(C).
    9. Peter Ekundayo Mesagan & Akanni Ismaila Yusuf & Azubuike Isaac Ogbuji, 2019. "Natural resource endowment and output growth: How crucial is deficit financing in managing resource-rich African economies?," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 21(2), pages 353-369, December.
    10. Ismaila Akanni Yusuf & Mohammed Bashir Salaudeen & Isaac Azubuike Ogbuji, 2022. "Exchange Rate Fluctuation and Inflation Nexus in Nigeria: The Case of Recent Recession," Journal of Economic Impact, Science Impact Publishers, vol. 4(1), pages 81-87.
    11. Musa Oduola & Mustapha O. Bello & Rahmon Popoola, 2022. "Foreign Direct Investment, Institution and Industrialisation in Sub-Saharan Africa," Economic Change and Restructuring, Springer, vol. 55(2), pages 577-606, May.
    12. Mesagan, Ekundayo Peter & Olunkwa, Chidi Ndubuisi, 2022. "Heterogeneous analysis of energy consumption, financial development, and pollution in Africa: The relevance of regulatory quality," Utilities Policy, Elsevier, vol. 74(C).
    13. Agatha Nkem Amadi & Isaac Azubuike Ogbuji & Hope Agbonrofo, 2020. "The Maturity and Repayment Structure of Sovereign Debt: Implications for Development Agenda in Nigeria," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(1), pages 115-120, March.
    14. Yusuf, Ismaila Akanni & Salaudeen, Mohammed Bashir & Agbonrofo, Hope, 2021. "Social and Economic Drivers of Stock Market Performance in Nigeria," MPRA Paper 111086, University Library of Munich, Germany.
    15. Mesagan, Ekundayo & Unah, Aboje & Idowu, Olamide & Alamu, Abidemi, 2019. "Oil Resource Abundance in Nigeria and Iran: Contrapuntal Effect on Social and Economic Welfare," BizEcons Quarterly, Strides Educational Foundation, vol. 4, pages 3-22.

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    More about this item

    Keywords

    Infrastructure; Institution; Industrial performance; Africa;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

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