The effect of globalisation on Sub-Saharan Africa's development thrives

In this study, the effect of globalisation (both its de jure and de facto components) on economic development in sub-Saharan Africa (SSA) is examined. The work utilises an ex-post facto research strategy and analyses panel data of 35 SSA nations from 1995 to 2018 using the Dynamic Common Correlated Effects (DCCE) estimation methodologies and the System Generalised Method of Moments (SGMM) techniques. These techniques are chosen based on their ability to account for cross-sectional dependence, cross correlation, and endogeneity. The KOF globalisation index, which takes into account the economic, social, and political aspects of globalisation as a predictor, as well as the human development index as indicators of economic development, are used in the study. The results show a strong and positive correlation between globalisation and economic development in SSA, particularly with the integration of global flows and activities (de jure and de facto globalisation index). The findings are robust to different specifications and estimation techniques. The study, therefore, concludes that globalisation could be an engine of SSA's economic development if governments reviewed their liberalization policies to take into account globalization issues and challenges.