Structural Reforms and Economic Growth in Africa: A Statistical Approach

Abstract

This research examined the relationship between Structural Reforms and Economic Growth in Africa between 1990 and 2022. Secondary data acquired from World Bank National Accounts data, and OECD National Accounts data files were used. The data was analyzed using multiple regression models. MINITAB 16 and Microsoft Excel 2019 were used for all computations. To find the significant parameters and test for model equality, the Durbin method of estimating multiple regression model was used; this revealed that all of the models' parameter estimates were not significant at 5%, which appears to be skewed. Model (SA), the South Africa Model, was found to be the "best" fit model among the five regression models, with the highest R and R2 values (R= 0.906; R2 = 82.2%), the smallest AIC value of 17.10, and the highest F-value of 32.266 calculated. Hence, model (SA) of estimation is the best, as it has the most impact on Africa's total GDP. Based on the findings, we recommend that the federal governments should develop and maintain essential infrastructure; including roads, ports, energy, and telecommunications, as this will not only facilitate trade and reduce the cost of doing business but also, will attract foreign investments.