Does rising resources income, consumer prices, government outlay and globalization hinder Africa’s sustainable development?

Abstract

This study examines the long-term effect of contemporary challenges such as growing resource income, rising consumer prices, inefficient public spending and globalization on Africa’s quest for sustainable development (SD). A robust measure of SD that integrates resource productivity is adopted. The study period spanned from 1991 to 2021, and data was sourced from 24 African countries. The empirical output for this study is derived using long-term methodologies, including feasible generalized least squares (FGLS), Driscoll-Kraay and panel dynamic ordinary least squares (PDOLS). The estimation of the long-term model is to capture the consequential effects of contemporary issues on SD. Evidence from the model reveals that increases in resources income, consumer prices, public outlay and globalization are deterrents to SD. The individual cross-sectional regression outputs also demonstrate similar effects. Given these contemporary challenges, the study proposes relevant policy measures to aid the attainment of SD.