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Cited by 70Fiscal Policy and Economic GrowthICT Impact and PoliciesEconomic Growth and Development

Infrastructure development and industrial sector productivity in sub-Saharan Africa

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Azolibe, Chukwuebuka Bernard, Okonkwo, Jisike Jude·2020·Journal of Economics and Development
DOI 10.1108/jed-11-2019-0062
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Abstract

Purpose The purpose of this study is to examine whether the state of infrastructure development in Sub-Saharan Africa actually stimulates industrial sector productivity, using a panel data set of 17 countries spanning from 2003 to 2018. Design/methodology/approach The study used panel least square estimation technique to examine the relationship between the variables. Findings The result of the study indicates that the major factor that influences industrial sector productivity in Sub-Saharan Africa is their quantity and quality of telecommunication infrastructure. Analysis shows that the relatively low level of industrial sector productivity in Sub-Saharan Africa is largely due to their poor electricity and transport infrastructure and underutilization of water supply and sanitation infrastructure. Practical implications The government should partner with other developed countries of the world such as Germany, Japan, Sweden, Netherlands, Austria, Singapore, United States of America, United Kingdom, Switzerland and United Arab Emirates, which are the top ten countries in infrastructure ranking as currently released by the World Bank, to equally extend their quality infrastructure to their own country for enhanced industrialization. Originality/value The novelty of this research lies on the fact it is a cross-country study as against the few empirical studies that focused only on a single country. Also, the study made use of the four main indicators of infrastructure development in an economy, which are electricity infrastructure, transport infrastructure, telecommunication infrastructure and water supply and sanitation infrastructure, to examine its effect on industrial sector productivity in Sub-Saharan Africa.

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  • In sub-Saharan Africa, the quantity and quality of telecommunications infrastructure is the main factor influencing industrial sector productivity.

    “The result of the study indicates that the main factor influencing the productivity of the industrial sector in sub-Saharan Africa is the quantity and quality of telecommunications infrastructure.”

    From Financial development and human capital thresholds for the infrastructure development-industrialization nexus in Africa (2023) · cites this paper as Azolibe and Okonkwo (2020)

    The results discussion reports that the ICT index was the only infrastructure measure with a significant positive relationship to industrial productivity. But the paper does not establish telecommunications as the main factor among all influences, and its ICT index measures phone subscriptions and internet users, not infrastructure quality (Section 3.1.5). The Conclusion also attributes relatively low productivity largely to poor electricity and transport infrastructure and underused water and sanitation infrastructure. (LLM, conf=0.86)

    Experimental — accuracy not yet measured

  • In sub-Saharan Africa, the relatively low productivity of the industrial sector is largely due to poor quality electricity and transport infrastructure and underutilization of water supply and sanitation infrastructure.

    “The analysis shows that the relatively low level of productivity of the industrial sector in sub-Saharan Africa is largely due to the poor quality of their electricity and transport infrastructure; and the underutilization of water supply and sanitation infrastructure.”

    From Financial development and human capital thresholds for the infrastructure development-industrialization nexus in Africa (2023) · cites this paper as Azolibe and Okonkwo (2020)

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Cites

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Research works printed but not linked: 8

  1. African Union (2014), "Programme for infrastructure development in Africa (PIDA): addressing the infrastructure gap in Africa, to speed up regional integration", Seventh Conference of African Ministers in Charge of Integration, 14-18 July, Swaziland. JED 22,1
  2. Ajakaiye, O. and Ncube, M. (2010), "Infrastructure and economic development in Africa", Journal of African Economies, Vol. 19 Supplement 1, pp. i3-i12, AERC.
  3. Fedderke, J. and Garlick, R. (2008), Infrastructure Development and Economic Growth in south Africa: A Review of the Accumulated Evidence, Economic Research Southern Africa, Policy Paper, 12, University of Cape Town, South Africa.
  4. Gafer, T.I. and Saad, B.A. (2009), "An empirical analysis of the effect of infrastructure on industrialization in Nigeria, 1980-2005", Journal of International Economic Review, Vol. 2 Nos 1/2, pp. 135-149.
  5. Kander, A., Malanima, P. and Warde, P. (2014), Power to the People: Energy in Europe over the Last Five Centuries, Princeton University Press, New Jersey.
  6. Mehmood, B. and Siddiqui, W. (2013), "What causes what? Panel cointegration approach on investment in telecommunications and economic growth: case of Asian countries", Romanian Economic Journal, Vol. 16 No. 47, pp. 3-16.
  7. Phiri, A. and Bothwell, N. (2015), Re-visting the Electricity-Growth Nexus in South Africa, Studies in Business and Economics, Vol. 11 No. 1, pp. 97-111.
  8. Umofia, N., Orji, K.E. and Worika, I.L. (2018), "Infrastructural development and the Nigerian industrial sector performance", International Journal of Scientific Engineering and Research, Vol. 9 No. 6, pp. 331-335.

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Authors
Azolibe, C. B., & Okonkwo, J. J.
Affiliations
Nnamdi Azikiwe University (NG)
Corresponding author
Azolibe, Chukwuebuka Bernard
ORCID
Azolibe, Chukwuebuka Bernard
Venue
Journal of Economics and Development
Publisher
Emerald
Published
2020-03-07
Volume
22
Issue
1
Pages
91-109
ISSN
  • 1859-0020 (ISSN-L)
  • 2632-5330
DOI
10.1108/jed-11-2019-0062
OpenAlex
W3012125338
Cited by
70
References
44
Citations by year
2026: 12 · 2025: 7 · 2024: 20 · 2023: 13 · 2022: 11 · 2021: 6 · 2020: 1
FWCI
6.59
Type
journal article
Language
en
Open access
Licence
Locations
  • Journal of Economics and Development (publishedVersion, cc-by)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Fiscal Policy and Economic Growth
  • Physical Sciences › Engineering › Media Technology › ICT Impact and Policies
  • Physical Sciences › Computer Science › Information Systems › Economic Growth and Development
Keywords
infrastructure development, industrial productivity, sub-Saharan Africa, telecommunications infrastructure, electricity infrastructure, transport infrastructure, water and sanitation, industrialization

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