Title:
IS THERE EVIDENCE OF CONVERGENCE IN SUB-SAHARAN AFRICA?

Authors:
Ogochukwu Theresa Ugwunna and Kenneth Onyebuchi Obi, PhD

Abstract:
This study sheds new light on the possibility of absolute beta-convergence among countries in sub-Saharan Africa (SSA). This convergence has been defined as the closing of the income gap between the poorest and richest countries in sub-Saharan Africa. In addition to testing for evidence of absolute beta-convergence among 43 countries in SSA, it also tests for convergence for different income groups – the middle and low-income economies respectively. Annual cross-country data from 43 SSA countries were employed between 1996 and 2020. The panel least square method was employed in the analysis. The dependent variable was the GDP growth rate while the independent variable was the initial GDP per capita. The result revealed that there is weak evidence of absolute beta-convergence among all the countries in SSA. This evidence was more pronounced among the middle-income economies, unlike the low-income economies of SSA. This implies that the inequality in the middle-income economies of SSA has reduced within this period of study but inequality has not reduced among the low-income economies. Hence, there is a need for the low-income economies of SSA to double their GDP growth rate in other to catch up with the rich countries.

Keywords:
institution, economic growth, sub-Saharan Africa, panel study

DOI:
https://doi.org/10.37500/IJESSR.2023.6220