African Renaissance and Australia Institutional Governance and Economic Growth, with special reference to Sub-Saharan Africa.

This econometric study attempted to provide additional evidence on the relationship between the quality of institutions and economic growth in developing countries. Using a Barro-type growth model, the study also examined whether the growth performance of sub-Saharan African countries was a consequence of institutions of governance. A newly assembled data set consisting of six governance clusters, namely voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption, was combined into an overall quality of institutional governance index (QIGI) based on equal weighting. The empirical results suggested that institutional quality had a positive impact on growth which was at least as strong as that of physical capital. Moreover, the study revealed that government effectiveness, measuring the quality of public service delivery and the competence of bureaucrats, was the most robust predictor of economic growth. It could also be concluded that governance may at best provide a partial explanation for sub-Saharan Africa’s growth rates. A major policy implication emanating from the findings was that the development of institutions was crucial to the achievement of sustained economic growth in developing countries and these institutions could not operate effectively without good governance