Public Investment and Inclusive Growth in Sub-saharan Africa

Gildas Boris Dudjo Yen; Armel Ndolembaye

doi:doi:10.11648/j.jwer.20251401.17

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Public Investment and Inclusive Growth in Sub-saharan Africa

Gildas Boris Dudjo Yen^*, Armel Ndolembaye

Published in Journal of World Economic Research (Volume 14, Issue 1)

Received: 16 April 2025 Accepted: 28 April 2025 Published: 29 May 2025

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Abstract

The objective of this work is to study the effects of public investments on the inclusiveness of growth in Sub-Saharan Africa. The question of the inclusiveness of growth is rekindling the debate around economic policies aimed at reducing inequalities, combating poverty and promoting sustainable development. To lift the majority of Africans out of poverty, growth must be more inclusive. Job opportunities must be created by improving the business environment and the investment climate that will allow the private sector to flourish. Most importantly, landlocked areas must be linked to growth poles through better infrastructure and greater regional integration, both within countries and across national borders. Inclusive growth will also require the effective transformation of the continent's natural wealth into created wealth, in particular by strengthening human capital. Wise, efficient and sustainable management of natural resources that benefits all Africans. The data used in this research are from secondary sources and cover 21 SSA countries over the period 2000-2020. With reference to the existing literature, three indicators have been used to capture inclusive growth. We used an indicator called the inclusive growth index, which has two dimensions: income growth and income distribution. The other two indicators are poverty and productive employment. Public investment is measured by general government gross fixed capital formation as a percentage of GDP. The econometric approach is based on panel regressions. The results of the various estimates show that public investments have a significant and negative impact on the inclusive growth index and on productive employment. Furthermore, no significant effect of public investments was found on poverty. This research thus shows that public investments have a negative impact on inclusive growth in SSA.

Published in	Journal of World Economic Research (Volume 14, Issue 1)
DOI	10.11648/j.jwer.20251401.17
Page(s)	80-98
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), 2025. Published by Science Publishing Group

Keywords

Inclusive Growth, Public Investments, Poverty, Inequalities, Productive Employment

References

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Yen, G. B. D., Ndolembaye, A. (2025). Public Investment and Inclusive Growth in Sub-saharan Africa. Journal of World Economic Research, 14(1), 80-98. https://doi.org/10.11648/j.jwer.20251401.17

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Yen, G. B. D.; Ndolembaye, A. Public Investment and Inclusive Growth in Sub-saharan Africa. J. World Econ. Res. 2025, 14(1), 80-98. doi: 10.11648/j.jwer.20251401.17

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AMA Style

Yen GBD, Ndolembaye A. Public Investment and Inclusive Growth in Sub-saharan Africa. J World Econ Res. 2025;14(1):80-98. doi: 10.11648/j.jwer.20251401.17

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@article{10.11648/j.jwer.20251401.17,
  author = {Gildas Boris Dudjo Yen and Armel Ndolembaye},
  title = {Public Investment and Inclusive Growth in Sub-saharan Africa
},
  journal = {Journal of World Economic Research},
  volume = {14},
  number = {1},
  pages = {80-98},
  doi = {10.11648/j.jwer.20251401.17},
  url = {https://doi.org/10.11648/j.jwer.20251401.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20251401.17},
  abstract = {The objective of this work is to study the effects of public investments on the inclusiveness of growth in Sub-Saharan Africa. The question of the inclusiveness of growth is rekindling the debate around economic policies aimed at reducing inequalities, combating poverty and promoting sustainable development. To lift the majority of Africans out of poverty, growth must be more inclusive. Job opportunities must be created by improving the business environment and the investment climate that will allow the private sector to flourish. Most importantly, landlocked areas must be linked to growth poles through better infrastructure and greater regional integration, both within countries and across national borders. Inclusive growth will also require the effective transformation of the continent's natural wealth into created wealth, in particular by strengthening human capital. Wise, efficient and sustainable management of natural resources that benefits all Africans. The data used in this research are from secondary sources and cover 21 SSA countries over the period 2000-2020. With reference to the existing literature, three indicators have been used to capture inclusive growth. We used an indicator called the inclusive growth index, which has two dimensions: income growth and income distribution. The other two indicators are poverty and productive employment. Public investment is measured by general government gross fixed capital formation as a percentage of GDP. The econometric approach is based on panel regressions. The results of the various estimates show that public investments have a significant and negative impact on the inclusive growth index and on productive employment. Furthermore, no significant effect of public investments was found on poverty. This research thus shows that public investments have a negative impact on inclusive growth in SSA.
},
 year = {2025}
}

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TY  - JOUR
T1  - Public Investment and Inclusive Growth in Sub-saharan Africa

AU  - Gildas Boris Dudjo Yen
AU  - Armel Ndolembaye
Y1  - 2025/05/29
PY  - 2025
N1  - https://doi.org/10.11648/j.jwer.20251401.17
DO  - 10.11648/j.jwer.20251401.17
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 80
EP  - 98
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20251401.17
AB  - The objective of this work is to study the effects of public investments on the inclusiveness of growth in Sub-Saharan Africa. The question of the inclusiveness of growth is rekindling the debate around economic policies aimed at reducing inequalities, combating poverty and promoting sustainable development. To lift the majority of Africans out of poverty, growth must be more inclusive. Job opportunities must be created by improving the business environment and the investment climate that will allow the private sector to flourish. Most importantly, landlocked areas must be linked to growth poles through better infrastructure and greater regional integration, both within countries and across national borders. Inclusive growth will also require the effective transformation of the continent's natural wealth into created wealth, in particular by strengthening human capital. Wise, efficient and sustainable management of natural resources that benefits all Africans. The data used in this research are from secondary sources and cover 21 SSA countries over the period 2000-2020. With reference to the existing literature, three indicators have been used to capture inclusive growth. We used an indicator called the inclusive growth index, which has two dimensions: income growth and income distribution. The other two indicators are poverty and productive employment. Public investment is measured by general government gross fixed capital formation as a percentage of GDP. The econometric approach is based on panel regressions. The results of the various estimates show that public investments have a significant and negative impact on the inclusive growth index and on productive employment. Furthermore, no significant effect of public investments was found on poverty. This research thus shows that public investments have a negative impact on inclusive growth in SSA.

VL  - 14
IS  - 1
ER  -

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Gildas Boris Dudjo Yen

Fundamental and Applied Economics Research Laboratory (LAREFA), Bandjoun Fotso Victor Institute of Technology, University of Dschang, Bandjoun, Cameroon

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Armel Ndolembaye

Fundamental and Applied Economics Research Laboratory (LAREFA), Faculty of Economics and Management, University of Dschang, Dschang, Cameroon

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Yen, G. B. D., Ndolembaye, A. (2025). Public Investment and Inclusive Growth in Sub-saharan Africa. Journal of World Economic Research, 14(1), 80-98. https://doi.org/10.11648/j.jwer.20251401.17

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ACS Style

Yen, G. B. D.; Ndolembaye, A. Public Investment and Inclusive Growth in Sub-saharan Africa. J. World Econ. Res. 2025, 14(1), 80-98. doi: 10.11648/j.jwer.20251401.17

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AMA Style

Yen GBD, Ndolembaye A. Public Investment and Inclusive Growth in Sub-saharan Africa. J World Econ Res. 2025;14(1):80-98. doi: 10.11648/j.jwer.20251401.17

Copy | Download

@article{10.11648/j.jwer.20251401.17,
  author = {Gildas Boris Dudjo Yen and Armel Ndolembaye},
  title = {Public Investment and Inclusive Growth in Sub-saharan Africa
},
  journal = {Journal of World Economic Research},
  volume = {14},
  number = {1},
  pages = {80-98},
  doi = {10.11648/j.jwer.20251401.17},
  url = {https://doi.org/10.11648/j.jwer.20251401.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20251401.17},
  abstract = {The objective of this work is to study the effects of public investments on the inclusiveness of growth in Sub-Saharan Africa. The question of the inclusiveness of growth is rekindling the debate around economic policies aimed at reducing inequalities, combating poverty and promoting sustainable development. To lift the majority of Africans out of poverty, growth must be more inclusive. Job opportunities must be created by improving the business environment and the investment climate that will allow the private sector to flourish. Most importantly, landlocked areas must be linked to growth poles through better infrastructure and greater regional integration, both within countries and across national borders. Inclusive growth will also require the effective transformation of the continent's natural wealth into created wealth, in particular by strengthening human capital. Wise, efficient and sustainable management of natural resources that benefits all Africans. The data used in this research are from secondary sources and cover 21 SSA countries over the period 2000-2020. With reference to the existing literature, three indicators have been used to capture inclusive growth. We used an indicator called the inclusive growth index, which has two dimensions: income growth and income distribution. The other two indicators are poverty and productive employment. Public investment is measured by general government gross fixed capital formation as a percentage of GDP. The econometric approach is based on panel regressions. The results of the various estimates show that public investments have a significant and negative impact on the inclusive growth index and on productive employment. Furthermore, no significant effect of public investments was found on poverty. This research thus shows that public investments have a negative impact on inclusive growth in SSA.
},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Public Investment and Inclusive Growth in Sub-saharan Africa

AU  - Gildas Boris Dudjo Yen
AU  - Armel Ndolembaye
Y1  - 2025/05/29
PY  - 2025
N1  - https://doi.org/10.11648/j.jwer.20251401.17
DO  - 10.11648/j.jwer.20251401.17
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 80
EP  - 98
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20251401.17
AB  - The objective of this work is to study the effects of public investments on the inclusiveness of growth in Sub-Saharan Africa. The question of the inclusiveness of growth is rekindling the debate around economic policies aimed at reducing inequalities, combating poverty and promoting sustainable development. To lift the majority of Africans out of poverty, growth must be more inclusive. Job opportunities must be created by improving the business environment and the investment climate that will allow the private sector to flourish. Most importantly, landlocked areas must be linked to growth poles through better infrastructure and greater regional integration, both within countries and across national borders. Inclusive growth will also require the effective transformation of the continent's natural wealth into created wealth, in particular by strengthening human capital. Wise, efficient and sustainable management of natural resources that benefits all Africans. The data used in this research are from secondary sources and cover 21 SSA countries over the period 2000-2020. With reference to the existing literature, three indicators have been used to capture inclusive growth. We used an indicator called the inclusive growth index, which has two dimensions: income growth and income distribution. The other two indicators are poverty and productive employment. Public investment is measured by general government gross fixed capital formation as a percentage of GDP. The econometric approach is based on panel regressions. The results of the various estimates show that public investments have a significant and negative impact on the inclusive growth index and on productive employment. Furthermore, no significant effect of public investments was found on poverty. This research thus shows that public investments have a negative impact on inclusive growth in SSA.

VL  - 14
IS  - 1
ER  -

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