Effects of Productive Capacity on Social Inclusion
Schouame Ebenezer Sylvain, Okobalemba Jules
Abstract
This paper assesses the effect of productive capacity on social inclusion with a particular focus on the level of security and protection of goods and people in Sub-Saharan Africa. Using a sample of 46 sub-Saharan African countries, we estimate a panel data model using the Generalized Methods of Moments in System (GMM-System) over the period 2007-2018. Our results show that the low level of productive capacities does not reduce security and protection in these countries, but contributes to its improvement. However, an improvement in productive capacities in sub-Saharan Africa, coupled with the implementation of appropriate development policies, would lead to high levels of security and protection. Furthermore, the decomposition analysis of productive capacities shows that the productive capacity of the private sector in human capital, transport, institutions, and information and communication technologies (ICTs) improves security and protection. In contrast to these sectors that promote security and protection, the productive capacity in natural resources is the sector that promotes insecurity. Finally, our analysis shows that structural change and energy have no effect. This decomposition allows us to target the major sectors that contribute to security and protection in order to achieve a more inclusive and prosperous society.
Full Text: PDF DOI: 10.15640/jeds.v11n1a10
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