REVISITING THE IMPACT OF MACROECONOMIC VARIABLES ON ECONOMIC GROWTH IN SUB-SAHARAN AFRICAN COUNTRIES: AN INSIGHT FROM AUGMENTED MEAN GROUP (AMG) ESTIMATOR

The quest for economic growth and development has been the major concern of sub-Saharan African (SSA) economies over the years. This study investigates the impact of macroeconomic variables on economic growth in 7 Sub-Saharan African (Angola, Chad, Equatorial Guinea, Gabon, Libya, Nigeria and Sudan) countries from 1990 to 2023. Using the Augmented Mean Group (AMG) estimator, the results show that inflation and unemployment rates negatively affect economic growth, while export, gross capital formation, and human capital have a positive impact. Real effective exchange rate and labor force participation rate have a negative but insignificant effect. The findings suggest that SSA countries can promote economic growth by increasing exports, investing in human capital, and implementing policies to control inflation and unemployment. The study’s results have implications for policymakers seeking to foster sustainable economic growth in the region.