HUMAN DEVELOPMENT AND GOVERNANCE IN AFRICA

Abstract

This study examines the nexus between governance and human development in Africa. It uses data for the period 2010–2019 and takes into account the existence of spatial dependence and controls for the endogeneity problem through a Generalized Spatial Two Stage Least Squares (2SLS) technique. The exploratory spatial data analysis reveals the existence of spatial dependence on human development and governance quality. Our empirical findings support that in Africa, “good fences make good neighbors,” or proximity matters in the distribution of human development. Implications are discussed. This study complements the extant literature by using more updated data and employing an alternative and more robust estimation approach.