Al-Hikmah University Journal

The study examined the effects of institutions on economic growth in Africa by adopting the growth accounting equation as the core framework for the per capita GDP growth models that were estimated. These models comprised 7 equations, with the 7 forms of the World Governance Indicators (WGI) being made to feature one at a time in the 7 equations. The models were first estimated with the Random Effects estimation techniques and appropriate diagnostic tests were carried out and remedial econometric steps were taken by estimating the models with PCSE when the tests signalled the existence of problems, to ensure the validity of the estimates. Following the above methodology, the highlights of findings confirmed the relevance of those newly introduced factors and the continued relevance of a number of the existing factors as determinants of economic growth. Based on the findings, the study recommended that policymakers who have a quest to promote economic growth should focus on factors (i.e., voice and accountability, regulatory quality, rule of law, combined governance indicator, external conflict, religious tension, capital stock growth, financial depth, foreign direct investment, literacy rate, socioeconomic condition, and investment profile) that were found to have effects on economic growth.