Public Investment and Inclusive Growth in Sub-saharan Africa

The objective of this work is to study the effects of public investments on the inclusiveness of growth in Sub-Saharan Africa. The question of the inclusiveness of growth is rekindling the debate around economic policies aimed at reducing inequalities, combating poverty and promoting sustainable development. To lift the majority of Africans out of poverty, growth must be more inclusive. Job opportunities must be created by improving the business environment and the investment climate that will allow the private sector to flourish. Most importantly, landlocked areas must be linked to growth poles through better infrastructure and greater regional integration, both within countries and across national borders. Inclusive growth will also require the effective transformation of the continent's natural wealth into created wealth, in particular by strengthening human capital. Wise, efficient and sustainable management of natural resources that benefits all Africans. The data used in this research are from secondary sources and cover 21 SSA countries over the period 2000-2020. With reference to the existing literature, three indicators have been used to capture inclusive growth. We used an indicator called the inclusive growth index, which has two dimensions: income growth and income distribution. The other two indicators are poverty and productive employment. Public investment is measured by general government gross fixed capital formation as a percentage of GDP. The econometric approach is based on panel regressions. The results of the various estimates show that public investments have a significant and negative impact on the inclusive growth index and on productive employment. Furthermore, no significant effect of public investments was found on poverty. This research thus shows that public investments have a negative impact on inclusive growth in SSA.