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Economic policy uncertainty, governance institutions and economic performance in Africa: are there regional differences?
In recent years, the global economy has witnessed several uncertainty-inducing events. However, empirical evidence in Africa on the effects of economic policy uncertainty (EPU) on economic activities remains scanty. Besides, the moderating effect of governance institutions on the uncertainty-economi...
Autores principales: | , , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Springer US
2023
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9807985/ http://dx.doi.org/10.1007/s10644-022-09472-7 |
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author | Ekeocha, Davidmac O. Ogbuabor, Jonathan E. Ogbonna, Oliver E. Orji, Anthony |
author_facet | Ekeocha, Davidmac O. Ogbuabor, Jonathan E. Ogbonna, Oliver E. Orji, Anthony |
author_sort | Ekeocha, Davidmac O. |
collection | PubMed |
description | In recent years, the global economy has witnessed several uncertainty-inducing events. However, empirical evidence in Africa on the effects of economic policy uncertainty (EPU) on economic activities remains scanty. Besides, the moderating effect of governance institutions on the uncertainty-economic performance relationship in Africa and the likelihood of regional differences in the response of economic activities to EPU on the continent are yet to be investigated. To address these gaps, we applied system GMM and quantile regressions on a panel of forty-seven African countries from 2010 to 2019. We find that while global EPU and EPUs from China, USA and Canada exert considerable influence on economic performance in Africa, the effects of domestic EPU and EPUs from Europe, UK, Japan, and Russia were negligible, suggesting that African economies are resilient to these sources of uncertainty shocks. We also find that governance institutions in Africa are not significantly moderating the uncertainty-economic performance relationship. However, our results highlighted regional differences in the response of economic activities to uncertainty, such that when compared to East and West Africa, economic performance in Central, North and Southern Africa is generally more resilient to global EPU and EPUs from China, USA, Europe and UK. We highlighted the policy implications of these findings. |
format | Online Article Text |
id | pubmed-9807985 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2023 |
publisher | Springer US |
record_format | MEDLINE/PubMed |
spelling | pubmed-98079852023-01-04 Economic policy uncertainty, governance institutions and economic performance in Africa: are there regional differences? Ekeocha, Davidmac O. Ogbuabor, Jonathan E. Ogbonna, Oliver E. Orji, Anthony Econ Change Restruct Article In recent years, the global economy has witnessed several uncertainty-inducing events. However, empirical evidence in Africa on the effects of economic policy uncertainty (EPU) on economic activities remains scanty. Besides, the moderating effect of governance institutions on the uncertainty-economic performance relationship in Africa and the likelihood of regional differences in the response of economic activities to EPU on the continent are yet to be investigated. To address these gaps, we applied system GMM and quantile regressions on a panel of forty-seven African countries from 2010 to 2019. We find that while global EPU and EPUs from China, USA and Canada exert considerable influence on economic performance in Africa, the effects of domestic EPU and EPUs from Europe, UK, Japan, and Russia were negligible, suggesting that African economies are resilient to these sources of uncertainty shocks. We also find that governance institutions in Africa are not significantly moderating the uncertainty-economic performance relationship. However, our results highlighted regional differences in the response of economic activities to uncertainty, such that when compared to East and West Africa, economic performance in Central, North and Southern Africa is generally more resilient to global EPU and EPUs from China, USA, Europe and UK. We highlighted the policy implications of these findings. Springer US 2023-01-03 2023 /pmc/articles/PMC9807985/ http://dx.doi.org/10.1007/s10644-022-09472-7 Text en © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2023, Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic. |
spellingShingle | Article Ekeocha, Davidmac O. Ogbuabor, Jonathan E. Ogbonna, Oliver E. Orji, Anthony Economic policy uncertainty, governance institutions and economic performance in Africa: are there regional differences? |
title | Economic policy uncertainty, governance institutions and economic performance in Africa: are there regional differences? |
title_full | Economic policy uncertainty, governance institutions and economic performance in Africa: are there regional differences? |
title_fullStr | Economic policy uncertainty, governance institutions and economic performance in Africa: are there regional differences? |
title_full_unstemmed | Economic policy uncertainty, governance institutions and economic performance in Africa: are there regional differences? |
title_short | Economic policy uncertainty, governance institutions and economic performance in Africa: are there regional differences? |
title_sort | economic policy uncertainty, governance institutions and economic performance in africa: are there regional differences? |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9807985/ http://dx.doi.org/10.1007/s10644-022-09472-7 |
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