Interconnections between governance and socioeconomic conditions:Understanding the challenges in sub-Saharan Africa

Given that challenges on the issue of socioeconomic development faced by countries in sub-Saharan Africa(SSA)have been identified as critical to strengthening the inherent link between governance and socioeconomic conditions,this study examines the interconnections between governance and socioeconomic conditions in SSA.With a focus on 25 countries in SSA between 2005 and 2019,we conduct the analysis based on the Panel-Corrected Standard Error and System Generalized Method of Moments estimations and panel causality tests.The results show that SSA does not seem to have the means of effective governance to spur improved socioeconomic conditions.Moreover,the pervasiveness of institutional problems in many countries of SSA has been responsible for the poor socioeconomic conditions in the region.Likewise,governance quality and socioeconomic conditions are found to influence each other.An improvement in socioeconomic conditions could result in better governance quality.On the other hand,governance quality is viewed as a vital ingredient in achieving needed socioeconomic development outcomes.Thus,it is suggested that there is a need for countries in SSA to streamline governing systems toward engendering improved well-being.The introduction and implementation of transformative policies through effective governance are also necessary for ensuring critical structural changes and increasing social service provision.Overall,there should be a proactive identification of ineffective policies and procedures by policymakers to enhance meaningful impacts in the region.

Determinants of foreign direct investment in fast-growing economies: evidence from the BRICS and MINT countries

The flow of foreign direct investment(FDI)into a country can benefit both the investing entity and host government.This study employed panel analysis to examine the factors that determine the direction of FDI to the fast-growing BRICS(Brazil,Russia,India,China,and South Africa)and MINT(Mexico,Indonesia,Nigeria,and Turkey)countries.First,we used a pooled time-series cross sectional analysis of data from 2001 to 2011 to estimate and model the determinants of FDI for three samples:BRICS only,MINT only,and BRICS and MINT combined.Then,a fixed effects approach was employed to provide the model for BRICS and MINT combined.The results demonstrate that market size,infrastructure availability,and trade openness play the most significant roles in attracting FDI to BRICS and MINT,while the roles of availability of natural resources and institutional quality are insignificant.To sustain and promote FDI inflow,the governments of BRICS and MINT must ensure that their countries remain attractive for investment by offering a level playing field for investors and political stability.BRICS and MINT governments also need to invest more in their human capital to ensure that their economies can absorb substantial skills and technology spillovers from FDI and promote sustainable long-term economic growth.This study is significant because it contributes to the literature on determinants of FDI by extending the scope of previous studies that often focused on BRICS only.