Institutional quality, consumer prices and the efficiency of sustainable economic growth in Sub-Saharan Africa

Purpose This study examines the role of institutional quality in the relationship between consumer prices and the efficiency of sustainable economic growth across 47 Sub-Saharan African economies. Design/methodology/approach The panel corrected standard errors (PCSE) model was adopted to analyze 47 African economies from 2000 to 2022. Findings The study found that consumer prices have a significant negative impact on the efficiency of sustainable economic growth in African countries. Additionally, the results indicate that institutional quality has a positive effect on the efficiency of sustainable economic growth in Sub-Saharan Africa (SSA) nations. The results suggest that institutional quality can mitigate the adverse effects of consumer prices on the efficiency of sustainable economic growth within SSA. Both consumer prices and institutional quality Granger-cause the efficiency of sustainable economic growth in the SSA region. Our research contributes to the existing literature by identifying the threshold at which institutional quality can mitigate the negative impact of consumer prices on the efficiency of sustainable economic growth in SSA. Originality/value This study offers important policy implications, highlighting potential areas for reform and improvement.