S-Space Graduate School of Public Administration (행정대학원) Dept. of Public Administration (행정학과) Korean Journal of Policy Studies (정책논총) Korean Journal of Policy Studies (정책논총) vol.32 no.1-3 (2017)
Socioeconomic Performance in Sub-Saharan Africa with Reference to Southeast Asia: Natural Resources or Institutions?
- Katoka, Ben; Kwon, Huck-ju
- Issue Date
- Korean Journal of Policy Studies, Vol.32 No.3 pp. 1-27
- Sub-Saharan Africa; Southeast Asia; Regulatory Quality; resource dependence; socioeconomic performance
- This paper explores the relationship between institutional quality, dependence on natural resources, and socioeconomic performance in Sub-Saharan Africa (SSA) and Southeast Asia (SEA) in the period from 1995 to 2015. It uses three measures—per capita GDP growth; foreign direct investment inflows (FDI); and infant mortality rate—to capture socioeconomic performance. The World Banks Regulatory Quality (RQ) indicator and the share of natural resource exports in percentage of total merchandise exports are used to capture institutional quality and resource dependence, respectively. Using Pooled OLS with robust estimators that control for temporal and spatial dependence, the paper finds that (1) higher levels of natural resource exports in SSA were significantly associated with larger FDI flows, but had no significant correlation with per capita GDP growth and infant mortality rate. Additionally, (2) in both SSA and SEA, a higher RQ score was significantly associated with increased per capita GDP growth and decreased infant mortality. The paper concludes by highlighting a few key areas that need serious consideration for further research on institutions and development in SSA.