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JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Security, Investment and Economic Growth in Sub-Saharan Africa
Author(s): Habibou Tapsoba, Pam Zahonogo, Sègbédji Parfait Aïhounhin
Citation: Habibou Tapsoba, Pam Zahonogo, Sègbédji Parfait Aïhounhin, (2020) "Security, Investment and Economic Growth in Sub-Saharan Africa," Journal of Applied Business and Economics, Vol. 22, Iss.9, pp. 119-141
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper analyses the relationship between security and economic growth through investment, in 28 countries in Sub-Saharan Africa (SSA). The analysis of this relationship is done using the model of Borensztein et al. (1998) and uses data for the period 1996-2015. Estimation is done by the system generalized method of moments (GMM). The results show that security positively influences the level of economic growth in SSA countries both through domestic investment and Foreign Direct Investment (FDI). The study therefore recommends that policies to support economic growth should incorporate security provisions such as guaranteeing property rights, strengthening the quality of institutions and reducing armed conflict in the area.
