The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality

Roland Joefendeh; Aloysius Njong Mom; Christian Lambert Nguena

doi:doi:10.11648/j.ijebo.20241204.16

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The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality

Roland Joefendeh^*

, Aloysius Njong Mom

, Christian Lambert Nguena

Published in Journal of Business and Economic Development (Volume 9, Issue 4)

Received: 3 November 2024 Accepted: 20 November 2024 Published: 31 December 2024

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Abstract

With an emphasis on the moderating effect of institutional quality, this study examines the effect of private investment on the sustainable development of Sub-Saharan African (SSA) nations. The analysis uses Generalised Method of Moments (GMM) and Feasible Generalised Least Squares (FGLS) methodologies to address potential endogeneity concerns and to improve the robustness of the results respectively. The study made use of panel data from 30 SSA nations from 2009 to 2019 obtained from World Develop-ment Indicators and Heritage Foundation. The results show that institutional quality and private investment have each have substantial and favourable impacts on sustainable development. Nevertheless, the results further demonstrates their combined influence have a negative impact on sustainable development, indicating that although both are advantageous separately; their combined influence might not always be in line with the objectives of sustainable development in the SSA context. This demonstrates a threshold effect by showing that the advantages of private investment in sustainable development decline in settings with inadequate institutional frameworks. The results imply that in order to guarantee that investments successfully support sustainable development, SSA nations should give priority to fortifying institutional frameworks in addition to encouraging private investment. These findings offer practical policy suggestions for creating a supportive atmosphere that optimises the positive developmental effects of private sector involvement.

Published in	Journal of Business and Economic Development (Volume 9, Issue 4)
DOI	10.11648/j.ijebo.20241204.16
Page(s)	254 -267
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Generalized Method of Moments (GMM), Feasible Generalized Least Squares (FGLS), Private Investment, Sustainable Development, Institutional Quality

References

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APA Style

Joefendeh, R., Mom, A. N., Nguena, C. L. (2024). The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality. Journal of Business and Economic Development, 9(4), 254 -267. https://doi.org/10.11648/j.ijebo.20241204.16

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ACS Style

Joefendeh, R.; Mom, A. N.; Nguena, C. L. The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality. J. Bus. Econ. Dev. 2024, 9(4), 254 -267. doi: 10.11648/j.ijebo.20241204.16

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AMA Style

Joefendeh R, Mom AN, Nguena CL. The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality. J Bus Econ Dev. 2024;9(4):254 -267. doi: 10.11648/j.ijebo.20241204.16

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@article{10.11648/j.ijebo.20241204.16,
  author = {Roland Joefendeh and Aloysius Njong Mom and Christian Lambert Nguena},
  title = {The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality
},
  journal = {Journal of Business and Economic Development},
  volume = {9},
  number = {4},
  pages = {254 -267},
  doi = {10.11648/j.ijebo.20241204.16},
  url = {https://doi.org/10.11648/j.ijebo.20241204.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20241204.16},
  abstract = {With an emphasis on the moderating effect of institutional quality, this study examines the effect of private investment on the sustainable development of Sub-Saharan African (SSA) nations. The analysis uses Generalised Method of Moments (GMM) and Feasible Generalised Least Squares (FGLS) methodologies to address potential endogeneity concerns and to improve the robustness of the results respectively. The study made use of panel data from 30 SSA nations from 2009 to 2019 obtained from World Develop-ment Indicators and Heritage Foundation. The results show that institutional quality and private investment have each have substantial and favourable impacts on sustainable development. Nevertheless, the results further demonstrates their combined influence have a negative impact on sustainable development, indicating that although both are advantageous separately; their combined influence might not always be in line with the objectives of sustainable development in the SSA context. This demonstrates a threshold effect by showing that the advantages of private investment in sustainable development decline in settings with inadequate institutional frameworks. The results imply that in order to guarantee that investments successfully support sustainable development, SSA nations should give priority to fortifying institutional frameworks in addition to encouraging private investment. These findings offer practical policy suggestions for creating a supportive atmosphere that optimises the positive developmental effects of private sector involvement.
},
 year = {2024}
}

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TY  - JOUR
T1  - The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality

AU  - Roland Joefendeh
AU  - Aloysius Njong Mom
AU  - Christian Lambert Nguena
Y1  - 2024/12/31
PY  - 2024
N1  - https://doi.org/10.11648/j.ijebo.20241204.16
DO  - 10.11648/j.ijebo.20241204.16
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 254 
EP  - 267
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.ijebo.20241204.16
AB  - With an emphasis on the moderating effect of institutional quality, this study examines the effect of private investment on the sustainable development of Sub-Saharan African (SSA) nations. The analysis uses Generalised Method of Moments (GMM) and Feasible Generalised Least Squares (FGLS) methodologies to address potential endogeneity concerns and to improve the robustness of the results respectively. The study made use of panel data from 30 SSA nations from 2009 to 2019 obtained from World Develop-ment Indicators and Heritage Foundation. The results show that institutional quality and private investment have each have substantial and favourable impacts on sustainable development. Nevertheless, the results further demonstrates their combined influence have a negative impact on sustainable development, indicating that although both are advantageous separately; their combined influence might not always be in line with the objectives of sustainable development in the SSA context. This demonstrates a threshold effect by showing that the advantages of private investment in sustainable development decline in settings with inadequate institutional frameworks. The results imply that in order to guarantee that investments successfully support sustainable development, SSA nations should give priority to fortifying institutional frameworks in addition to encouraging private investment. These findings offer practical policy suggestions for creating a supportive atmosphere that optimises the positive developmental effects of private sector involvement.

VL  - 9
IS  - 4
ER  -

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Author Information

Roland Joefendeh

Faculty of Economics and Management Science, University of Bamenda, Bamenda, Caomeroon

Contact Email

http://orcid.org/0009-0002-0555-7310
Aloysius Njong Mom

Faculty of Economics and Management Science, University of Bamenda, Bamenda, Caomeroon

Contact Email

http://orcid.org/0000-0002-3746-4314
Christian Lambert Nguena

Faculty of Economics and Management, University of Dschang, Dschang, Caomeroon

Contact Email

http://orcid.org/0000-0001-8889-9601

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APA Style

Joefendeh, R., Mom, A. N., Nguena, C. L. (2024). The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality. Journal of Business and Economic Development, 9(4), 254 -267. https://doi.org/10.11648/j.ijebo.20241204.16

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ACS Style

Joefendeh, R.; Mom, A. N.; Nguena, C. L. The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality. J. Bus. Econ. Dev. 2024, 9(4), 254 -267. doi: 10.11648/j.ijebo.20241204.16

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AMA Style

Joefendeh R, Mom AN, Nguena CL. The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality. J Bus Econ Dev. 2024;9(4):254 -267. doi: 10.11648/j.ijebo.20241204.16

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@article{10.11648/j.ijebo.20241204.16,
  author = {Roland Joefendeh and Aloysius Njong Mom and Christian Lambert Nguena},
  title = {The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality
},
  journal = {Journal of Business and Economic Development},
  volume = {9},
  number = {4},
  pages = {254 -267},
  doi = {10.11648/j.ijebo.20241204.16},
  url = {https://doi.org/10.11648/j.ijebo.20241204.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20241204.16},
  abstract = {With an emphasis on the moderating effect of institutional quality, this study examines the effect of private investment on the sustainable development of Sub-Saharan African (SSA) nations. The analysis uses Generalised Method of Moments (GMM) and Feasible Generalised Least Squares (FGLS) methodologies to address potential endogeneity concerns and to improve the robustness of the results respectively. The study made use of panel data from 30 SSA nations from 2009 to 2019 obtained from World Develop-ment Indicators and Heritage Foundation. The results show that institutional quality and private investment have each have substantial and favourable impacts on sustainable development. Nevertheless, the results further demonstrates their combined influence have a negative impact on sustainable development, indicating that although both are advantageous separately; their combined influence might not always be in line with the objectives of sustainable development in the SSA context. This demonstrates a threshold effect by showing that the advantages of private investment in sustainable development decline in settings with inadequate institutional frameworks. The results imply that in order to guarantee that investments successfully support sustainable development, SSA nations should give priority to fortifying institutional frameworks in addition to encouraging private investment. These findings offer practical policy suggestions for creating a supportive atmosphere that optimises the positive developmental effects of private sector involvement.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - The Impact of Private Investment on the Sustainable Development of Sub-Saharan African Countries: The Moderating Role of Institutional Quality

AU  - Roland Joefendeh
AU  - Aloysius Njong Mom
AU  - Christian Lambert Nguena
Y1  - 2024/12/31
PY  - 2024
N1  - https://doi.org/10.11648/j.ijebo.20241204.16
DO  - 10.11648/j.ijebo.20241204.16
T2  - Journal of Business and Economic Development
JF  - Journal of Business and Economic Development
JO  - Journal of Business and Economic Development
SP  - 254 
EP  - 267
PB  - Science Publishing Group
SN  - 2637-3874
UR  - https://doi.org/10.11648/j.ijebo.20241204.16
AB  - With an emphasis on the moderating effect of institutional quality, this study examines the effect of private investment on the sustainable development of Sub-Saharan African (SSA) nations. The analysis uses Generalised Method of Moments (GMM) and Feasible Generalised Least Squares (FGLS) methodologies to address potential endogeneity concerns and to improve the robustness of the results respectively. The study made use of panel data from 30 SSA nations from 2009 to 2019 obtained from World Develop-ment Indicators and Heritage Foundation. The results show that institutional quality and private investment have each have substantial and favourable impacts on sustainable development. Nevertheless, the results further demonstrates their combined influence have a negative impact on sustainable development, indicating that although both are advantageous separately; their combined influence might not always be in line with the objectives of sustainable development in the SSA context. This demonstrates a threshold effect by showing that the advantages of private investment in sustainable development decline in settings with inadequate institutional frameworks. The results imply that in order to guarantee that investments successfully support sustainable development, SSA nations should give priority to fortifying institutional frameworks in addition to encouraging private investment. These findings offer practical policy suggestions for creating a supportive atmosphere that optimises the positive developmental effects of private sector involvement.

VL  - 9
IS  - 4
ER  -

Copy | Download