Nexus between Government Effectiveness and Living Condition in Sub-Saharan Africa

Abstract

A two wave panel data from Afro-barometer database is used to examine the nexus between government effectiveness and living condition in Sub-Saharan Africa. Exploratory factor analysis with polychoric correlation and ordered probit estimation technique for panel data are used in the inferential analysis. The vulnerability of the dependent variable (self-assessed living condition) for heterogeneity problem is shown using Random effects generalized ordered probit model with auto fit procedure. This study found that government futility in provision of basic needs and basic security, and in handling of critical economic issues, in which individuals are facing in their day to day life, deteriorates the living condition of individuals in Sub-Saharan Africa. This result, convincingly, demonstrates the ineptitude of those governments in Sub-Saharan Africa, which are mostly characterized by being bureaucratic, undemocratic, unaccountable, full of violence and debauched, and hence makes the life of their citizens unsafe and meagre. The result also shows that being literate the individuals are, the higher the probability of living in good condition compared to those who are illiterate. Hence, those governments should focus on their policies and implementation, which helps to enhance the living condition of individuals through provision of basic needs and basic security, and better treatment of economic issues including unemployment, access to basic services, infrastructure, and income inequality.

Keywords: Living Condition, Government effectiveness, ordered probit, Panel data, heterogeneity, Sub-Saharan Africa

JEL Classification: E02, I31, I32