Effects of governance quality on exports in Sub-Saharan Africa

Abstract

This paper investigates the effects of governance quality on exports in sub-Saharan African countries. We include the six worldwide governance indicators (i.e., voice and accountability, political stability, regulatory quality, rule of law, control of corruption, and government effectiveness) as explanatory factors for exports and its components in a sample of 45 countries over the period 1996–2019. System GMM approach is privileged for estimations. We find that total exports and exports of services are positively affected by the six governance indicators, while manufactured goods are positively associated with those indicators except government effectiveness. While political stability, voice and accountability, rule of law, and control of corruption have positive effects on exports of goods, only voice and accountability impact positively primary commodities. This indicates that sub-Saharan African countries should focus on strengthening political governance and improving business environment to boost exports.