Corporate governance and economic growth in sub-Saharan Africa

Abstract

For decades, the issue of corporate governance and its role in economic growth has attracted global attention from both policy-makers and researchers due to corporate scandals. This study took a deductive approach. Panel data from 13 selected Sub-Saharan African countries from 1996 to 2017 was used to help analyse the relationship through an econometric model in which gross domestic product per capita was the dependent variable while the six dimensions of governance were used as proxies for corporate governance. Foreign direct investment and trade were used as control variables. Accordingly, the results of the regression model show a significant good fit for the data with control of corruption, government effectiveness, regulatory quality and voice and accountability being positive and significant except government effectiveness and regulatory quality that were insignificant. Political stability and rule of law were negative. This article is, however, of great value to researchers, policy-makers, community and investors.