Governance and Development in Africa: A Panel Causal Investigation

Hammed Adetola Adefeso


This study examined the direction of causality and relationship between governance and development in a panel of 37 African countries during 1996 to 2016 period. The Panel cointegration supports the existence of long-run relationship between governance and development in African countries. The study found bidirectional causality between governance and development in the short-run and unidirectional causality from development to governance in the long-run for African countries. The policy implication from these findings suggests that for African countries to experience good governance in the long-run, there must be in place an improved human development indicator that affects positively the wellbeing and standard of living of the citizenries.


Governance; Development; Panel cointegration; Africa

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