Institutional Framework and the Transition to Green Growth for Sustainable Development in Africa

Abstract

This study critically examined the impact of economic and political institutions on Green Growth (GG) transition in Africa based on the premise that weak policies and unfavourable enabling environment can slow down the transition. Using data from 52 countries from 1980 to 2017, the study used a three-panel model combination to estimate the response of the measure of green growth to institutional factors. The results indicate a significant positive relationship between institutions and green growth with the interaction of two institution indicators, showing that economic institutions have to be complemented with strong political institutions. Therefore, a strong institutional framework is necessary for the transition. It is recommended that policymakers in sub-Saharan African (SSA) countries strengthen the reform of political institutions so that they can complement economic institutions in order not to jeopardise ongoing efforts towards driving the transition to green growth for sustainable development.