Democracy and economic growth: A comparative analysis between Francophone and Anglophone countries in sub-Saharan Africa
DOI:
https://doi.org/10.18559/rielf.2024.2.1980Keywords:
democracy, economic growth, Francophone, AnglophoneAbstract
Purpose: This article aims to identify the transmission channels of the effects of democracy on economic growth through a comparative analysis between eighteen Francophone countries and eighteen Anglophone countries in sub-Saharan Africa.
Design/methodology/approach: The approach adopted consisted of establishing a system of simultaneous equations estimated by the triple least squares technique using panel data over the period 2000–2017.
Findings: The results show that, on the one hand, democracy has a positive effect on economic growth through the public spending channel and a negative effect on growth through the corruption channel in African Francophone countries. On the other hand, the findings reveal that democracy positively influences economic growth through the public spending channel and that of investment in African Anglophone countries. Moreover, the findings support the idea that African Anglophone countries experience more economic progress, unlike African Francophone countries, thanks to the proper functioning of their democratic system.
Originality/value: The originality lies in the analysis of the mixed effect of democracy on economic growth by differentiating between groups of Francophone and Anglophone countries in sub-Saharan Africa.
JEL Classification
Panel Data Models • Spatio-temporal Models (C33)
Economic Growth of Open Economies (F43)
Macroeconomic Analyses of Economic Development (O11)
Institutions and Growth (O43)
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