Abstract
The paper examines the impact of electricity availabilities proxy by electricity supply, human capital development and the role of institutional qualities on economic growth in Sub-Sahara African countries using a panel data spanning from 1980 to 2016. The study utilized various dynamic panel models (Dynamic Ordinary Least Square, DOLS, PMG, DFE and FMOLS) and several panel unit roots model were adopted to check the degree of integration of the variables. Our empirical results found that electricity consumption, electricity availability and control of corruption have a positive impact on economic growth in SSA countries. However, human capital development has a negatively significant impact on economic growth in SSA countries. A deregulated energy sector is likely to yield smaller net benefits than a regulated market due to nature of African economies due to the level of corruption in the region. We therefore suggest a policy to improving their institutions qualities and build a good political structure to utilities government expenditure on electricity supply and human capital development to ensure economic growth in SSA countries.Keywords: Electricity availability, Institutional qualities, Human Capital development and Sub-Sahara Africa.JEL Classifications: K32 H52, F43, R11DOI: https://doi.org/10.32479/ijeep.8201
Highlights
In recent times, there are various literatures focusing on the interconnectivity among electricity availability and economic growth but very few have included human capital and institutional qualities in the electricity availability and economic growth model see, Lin and Moubarak (2014), Al-Mulali et al (2015) among others
We found that African economic growth is measured by the electricity availability and good institutional qualities
The study investigates the relationship among electricity consumption, electricity availability, human capital development, and economic growth in Sub-Sahara African countries
Summary
There are various literatures focusing on the interconnectivity among electricity availability and economic growth but very few have included human capital and institutional qualities in the electricity availability and economic growth model see, Lin and Moubarak (2014), Al-Mulali et al (2015) among others. From empirical and policy point of view, the connection between energy availability, human capital and gross domestic product (GDP) has a significant implication on the welfare of resident of a nation Chu et al (2019). Wolde-Rufael (2006) argued that, if a nation wants to continue growing economically and working towards poverty elimination, efficient management of electricity availabilities are highly imperative for sustainable growth. Electricity Availability, Institutions and Sustainable Economic Growth The role electricity plays in our present day lives cannot be over emphasized, especially its contributions in vital sectors of the economy, such as manufacturing sectors and communication, Agriculture and Education (Adebola and Opeyemi, 2011; Aker and Mbiti, 2010).
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