Industrial Sector Growth, Macroeconomic Performance, and Corruption in the Sub Sahara Africa

Abstract

The study investigates the impacts of macroeconomic performance and corruption on the industrial growth of the SSA. The industrial sector is seen as the engine of the economic development of any country and hence policies that will promote the growth of the sector cannot be over emphasized. The study investigated effects of macroeconomic variables such as exchange rate, economic growth, inflation rate and unemployment rate as measures of economic performance in the SSA on the industrial sector growth. Also quality of institutions effects on industrial sector is investigated using control of corruption as proxy. The preliminary diagnostic results show that Panel Auto-Regressive Distributed Lags P-ARDL is appropriate for the estimation and the results show that both macroeconomic performance and corruption have significant impacts of the industrial sector growth in SSA. However, an exchange rate that will encourage domestic production, minimum inflation, and unemployment rates, will guarantee sustainable growth in the industrial sector, while tightening grip on control of corruption.