Economic and political analysis of development process in sub-Saharan African countries

Economic development is a topic which has been debated in economic literature since end of Second World War. Those discussion have focused on three region which could be considered as less developed, and these regions are Latin America, Southern and Eastern Asia-Pacific Countries and Sub-Saharan Africa. Once economic development trend of those three regions are analyzed, relative economic development success is observed in Southern and Eastern Asia-Pacific Countries and Latin America; whereas, Sub-Saharan Africa has negatively diverged from these two regions on economic development. Main objective of this study to inquire the economic and political factors lying in the root of development failure in Sub-Saharan African countries. Due to lack of data, only 17 of Sub-Saharan African countries have been included to empirical analysis for the period of 1990-2016. Empirical findings are as follows: (a) long-term relationships exist between development, democracy, peace, foreign direct investment, total debt service, investment and corruption. (b) Democracy and peace have positive effects on economic development. On the other hand, foreign direct investment has a negative effect on economic development among Sub-Saharan African countries. Ultimately, effects of total debt service, investment and corruption varies in regard to estimation methods. But all those effects are statistically insignificant. In light of these findings, it can be said that precautions for empowering democratic processes, ensuring environment for peace and stability can contribute to solution of chronic less development problem among Sub-Saharan African Countries. Besides, creation of foreign direct investment policy and environment which accord with economic facts of regions can lessen negative effect of foreign direct investment on economic development among Sub-Saharan African countries.