The Impact of Governance on Economic Development in Africa
DOI:
https://doi.org/10.18192/clg-cgl.v9i1.7098Keywords:
governance, economic development, Africa, FDI, tradeAbstract
This study examines the impact of governance on Foreign Direct Investments (FDI) and trade in Africa. The main findings reveal that governance indicators: voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, rule of law, and control of corruption are major drivers of economic growth on the continent. They emerge as crucial factors for attracting FDI and enhancing trade, underscoring the importance of good governance. Thus, transparent and effective institutions also foster integration into international trade and FDI. Regional analysis highlights significant variations, emphasizing the importance of considering specific national contexts. Quantitative approaches confirm the identified objectives, providing rich insights into national dynamics, which will be justified by correlations, first through the Ordinary Least Squares (OLS) method to assess the significance of each governance indicator on trade and FDI. These findings underscore the imperative to strengthen institutions and adopt public policies focused on good governance to stimulate sustainable economic development in Africa.
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