Estimating the Impact of Governance Quality on Development in Sub-Saharan Africa

Abstract

This aim of this study was to analyse the influence of governance quality on development in Southern Africa using a set of cross country panel data from 11 countries during 2005 to 2012. Based on the Breusch-Pagan Lagrangian Multiplier test and Hausman test procedures, a Random Effects model, the results show that political stability; and voice and accountability exhibit significant positive effects on development; with political stability indicating a more pronounced significant impact on development in the region. The estimated R-squared shows that nearly 25.97 percent total variation in development was accounted for by political stability and voice and accountability. The Wald chi-square (=29.75; p < 0.05) shows significance of the model.

Keywords: governance, quality, development, political stability, voice and accountability