Globalization and Inclusive Human Development in Africa

Simplice Asongu 1 , 2  and Jacinta Nwachukwu 3
  • 1 Research Department, African Governance and Development Institute, P.O. Box 8413 Yaoundé, Yaoundé, Cameroon
  • 2 Department of Economics, University of South Africa, P. O. Box 392, UNISA 0003, Pretoria, South Africa
  • 3 School of Economics, Finance and Accounting, Faculty of Business and Law, Coventry University, Priory Street, Coventry, UK
Simplice Asongu
  • Corresponding author
  • Research Department, African Governance and Development Institute, P.O. Box 8413 Yaoundé, Yaoundé, Centre, Cameroon
  • Department of Economics, University of South Africa, P. O. Box 392, UNISA 0003, Pretoria, South Africa
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and Jacinta Nwachukwu
  • School of Economics, Finance and Accounting, Faculty of Business and Law, Coventry University, Priory Street, Coventry, CV1 5FB, UK
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Abstract

This study extents the literature on responses to a recent World Bank report on the African poverty tragedy by assessing the effect of globalisation on inclusive human development in 51 African countries for the period 1996–2011. Political, economic, social and general globalisation variables are used. The empirical evidence is based on Generalised Method of Moments (GMM) and Instrumental Quantile Regressions (IQR). While estimated coefficients are not significant in GMM results, for IQR, globalisation positively affects inclusive human development and the favourable effect is higher in countries with high initial levels of inclusive development. The main economic implication is that in the post-2015 development agenda, countries would benefit more from globalisation by increasing their levels of inclusive development.

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