PreprintCited by 113Economic Growth and DevelopmentFiscal Policy and Economic GrowthEconomic Growth and Productivity

Linear and Non-Linear Effects of Infrastructures on Inclusive Human Development in Africa

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Nchofoung, Tii, Asongu, Simplice, Njamen Kengdo, Arsène, Achuo, Elvis·2021·African Development Review

Abstract

The objectives of this paper are to verify the linear and the non-linear effects of infrastructural development on inclusive human development in Africa. The results of the system GMM estimations show a positive effect of infrastructural development on inclusive development across all the infrastructural development indexes employed, except the ICT infrastructural composite index which presents an insignificant negative effect. Besides, a non-linear effect of infrastructures on inclusive development was established across all the infrastructure indicators except for the ICT indicator. Negative thresholds for complementary policies are established for the African Infrastructure Development Index (AIDI) and the transport index while positive thresholds are apparent for the electricity index and the water and sanitation infrastructure index (WSS). Accordingly, in order to sustain the positive incidence of the AIDI and transport index on human development, complementary policies should be engaged to avoid an overall negative effect on human development when the indexes are respectively, 31.12% and 25.56%. In the same vein, the electricity index and WSSI should exceed critical levels of respectively 49.79% and 41.92%, to engender an overall positive effect on inclusive human development.

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Crossref · 10.2139/ssrn.3866445

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  • All explanatory variables are considered as potential sources of endogeneity.

    “Based on contemporary literature (Asongu and Nwachukwu, 2016;Asongu and Leke, 2019;Nchofoung et al., 2021), all our explanatory variables are considered as potential sources of endogeneity.”
  • The second lags of the explanatory variables are used as instruments in both the level and difference equations.

    “The second lags of the explanatory variables are used as instruments in both the level and difference equations.”

    From Financial development and human capital thresholds for the infrastructure development-industrialization nexus in Africa (2023) · cites this paper as Nchofoung et al., 2021

    Section 3.2 (p. 10) describes the GMM method and says period dummies are used as instruments, but it does not specify second lags as instruments in both level and difference equations. Searches for the quoted wording and for second-lag instruments found no such statement; the estimation equations in our copy are not decoded. (LLM, conf=0.69)

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Research works printed but not linked: 4

  1. AfDB (2018). African Infrastructures: Considerable Potential, But Limited Impact On Equitable Growth. African Economic Outlook 2018, Chapter 3.
  2. Asongu, S. A. (2018). CO 2 emission thresholds for inclusive human development in subSaharan Africa. Environmental Science and Pollution Research , 25 (26), 26005-26019.
  3. Musah, A., Sare, Y. A., & Ibrahim, M. (2019). Examining the threshold effects of inflation on economic growth in Ghana. Ghanaian Journal of Economics , 7 (1), 5-23.
  4. Ogun, T. P. (2010, August). Infrastructure and poverty reduction: Implications for urban development in Nigeria. In Urban Forum (Vol. 21, No. 3, pp. 249-266). Springer Netherlands.

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Authors
Nchofoung, T., Asongu, S., Njamen Kengdo, A., & Achuo, E.
Affiliations
  • Université de Dschang (CM)
  • University of Johannesburg (ZA)
Corresponding author
Asongu, Simplice
Venue
African Development Review
Publisher
Elsevier BV
Published
2021
Volume
34
Issue
1
Pages
81-96
ISSN
1017-6772 (ISSN-L)
OpenAlex
W3173297531
Cited by
113
References
45
Citations by year
2026: 18 · 2025: 23 · 2024: 18 · 2023: 37 · 2022: 16 · 2021: 1
FWCI
23.22
Type
journal article
Language
en
Open access
Locations
  • African Development Review (publishedVersion)
  • SSRN Electronic Journal (acceptedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • Munich Personal RePEc Archive (Ludwig Maximilian University of Munich) (submittedVersion)
  • Econstor (Econstor) (submittedVersion)
Topics
  • Physical Sciences › Computer Science › Information Systems › Economic Growth and Development
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Fiscal Policy and Economic Growth
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
Keywords
infrastructure development, inclusive human development, nonlinear effects, threshold effects, transport infrastructure, electricity access, water and sanitation, information and communication technologies, complementary policies, Africa

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