Revisiting the impact of fragility indices on economic growth: New insights from sub-saharan Africa

This research examines the impact of fragility indices on economic growth in Sub-Saharan Africa from 2006 to 2019. The variables of interest for this study include economic decline, economic inequality, human flight and brain drain, external intervention, and economic growth. The research objectives are to investigate the connection between the fragility indices and economic growth and to empirically determine the impact of fragility indices on economic growth. The data were tested for cross-dependence using Breusch-Pagan LM test; the existence of cointegration was ascertained in our variable using the Westerlund cointegration test. Fully modified ordinary least squares estimation technique was adopted for the first objective and the findings showed that only external intervention indices had a positive impact on economic growth. In achieving our second objective, we adopted mean group, augmented mean group, and common correlated effect mean group estimation technique and found that the coefficient of economic decline, economic inequality, and human flight and brain drain had a negative impact on economic growth, while external intervention had a positive impact. The research study recommends that the governments of fragile countries should develop corrective measures to remove these indicators to ensure progressive growth. Also, the state administrations need to ensure that suitable policies are put in place to encourage research and development. This will limit the problem of human flight and brain drain which are the major problems of fragile countries.