Home › BJAR › Vol 1, Issue 4 › Article
Original Research Article

INFRASTRUCTURE DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA AND GHANA: EVIDENCE FROM A MULTIDIMENSIONAL PANEL ANALYSIS, 1990–2024

Ohalete Chibuzor Sunday, Ahuchogu Gladys Obinna

Click an author's name to view their details

Ohalete Chibuzor Sunday Corresponding Author

Department of Economics, Admiralty University of Nigeria, Ibusa, Delta State, Nigeria; Nigerian Navy College of Accounts and Finance, Owerrinta, Abia State, Nigeria.

ORCID: 0009-0004-4871-9302

Correspondence: ohaletesunday@gmail.com

Abstract

Infrastructure development is widely recognized as an important foundation for productive capacity, investment, technological advancement and economic growth. However, infrastructure is multidimensional, and its different components may influence economic performance through different channels. This study examines the effect of economic, social, digital and institutional infrastructure on economic growth in Nigeria and Ghana over the period 1990–2024. The study employs annual panel data covering 70 country-year observations and estimates a fixed-effects panel model after preliminary panel diagnostics and stationarity testing. Economic growth is measured using the growth rate of real output, while economic, social and digital infrastructure are represented by the respective infrastructure indices and institutional infrastructure by an institutional quality index. The results indicate that economic, social, digital and institutional infrastructure all have positive coefficients in the fixed-effects model. However, economic and social infrastructure are statistically insignificant at the 5 percent level, while digital infrastructure is positive and marginally significant at the 10 percent level. Institutional infrastructure has a positive and statistically significant effect on economic growth. The overall model is statistically significant and explains approximately 33.97 percent of the variation in economic growth. The Dumitrescu–Hurlin causality results further indicate bidirectional causality between social infrastructure and economic growth and between institutional infrastructure and economic growth, while economic growth unidirectionally predicts economic infrastructure. No significant causality is observed between digital infrastructure and economic growth. The findings suggest that infrastructure policy should move beyond isolated physical investment and incorporate institutional quality, human capital, digital connectivity and complementary infrastructure.

Keywords: Infrastructure Development; Economic Growth; Economic Infrastructure; Social Infrastructure; Digital Infrastructure; Institutional Infrastructure; Nigeria; Ghana; Panel Data.
📄 Read Full Text Open in new tab ↗

How to Cite

APA

Sunday, O. C., & Obinna, A. G. (2026). INFRASTRUCTURE DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA AND GHANA: EVIDENCE FROM A MULTIDIMENSIONAL PANEL ANALYSIS, 1990–2024. British Journal of Advanced Research, 1(4), Article 031. https://doi.org/10.68263/BJAR-NFQW22S2

MLA

Sunday, Ohalete Chibuzor, and Ahuchogu Gladys Obinna. "INFRASTRUCTURE DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA AND GHANA: EVIDENCE FROM A MULTIDIMENSIONAL PANEL ANALYSIS, 1990–2024." British Journal of Advanced Research, vol. 1, no. 4, 2026, article 031. DOI: https://doi.org/10.68263/BJAR-NFQW22S2

Chicago

Sunday, Ohalete Chibuzor, and Ahuchogu Gladys Obinna. "INFRASTRUCTURE DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA AND GHANA: EVIDENCE FROM A MULTIDIMENSIONAL PANEL ANALYSIS, 1990–2024." British Journal of Advanced Research 1, no. 4 (2026): 031. https://doi.org/10.68263/BJAR-NFQW22S2

References

Acemoglu, D., Johnson, S., & Robinson, J. A. (2001). The colonial origins of comparative development: An empirical investigation. American Economic Review, 91(5), 1369–1401. Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. Crown Business. Acemoglu, D., & Robinson, J. A. (2019). Rents and economic development: The perspective of Why Nations Fail. Public Choice, 181(1–2), 13–28. https://doi.org/10.1007/s11127-019-00645-z Acemoglu, D., Johnson, S., & Robinson, J. A. (2005). Institutions as a fundamental cause of long-run growth. In P. Aghion & S. N. Durlauf (Eds.), Handbook of economic growth (Vol. 1A, pp. 385–472). Elsevier. Aschauer, D. A. (1989). Is public expenditure productive? Journal of Monetary Economics, 23(2), 177–200. Barro, R. J. (1990). Government spending in a simple model of endogenous growth. Journal of Political Economy, 98(5), S103–S125. Calderón, C., & Servén, L. (2014). Infrastructure, growth, and inequality: An overview. World Bank Policy Research Working Paper No. 7034. Domar, E. D. (1946). Capital expansion, rate of growth, and employment. Econometrica, 14(2), 137–147. Dumitrescu, E.-I., & Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic Modelling, 29(4), 1450–1460. Ekeocha, D. O., Ogbuabor, J. E., & Orji, A. (2022). Public infrastructural development and economic performance in Africa: A new evidence from panel data analysis. Economic Change and Restructuring, 55(2), 931–950. https://doi.org/10.1007/s10644-021-09334-8 Ezeudu, T. S., & Fadeyi, T. J. (2024). Examining the influence of infrastructure deficit on economic activities, education, and healthcare in rural areas of Nigeria. Nnamdi Azikiwe Journal of Political Science, 9(1), 155–176. Harrod, R. F. (1939). An essay in dynamic theory. The Economic Journal, 49(193), 14–33. Hirschman, A. O. (1958). The strategy of economic development. Yale University Press. Kapingura, F. M., & Sanusi, K. A. (2024). Infrastructural development and trade performance in Sub-Saharan African countries. International Journal of Applied Economics, Finance and Accounting, 18(1). Kodongo, O., & Ojah, K. (2016). Does infrastructure really explain economic growth in Sub-Saharan Africa? Review of Development Finance, 6(2), 105–125. Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3–42. Munim, Z. H., & Schramm, H.-J. (2018). The impacts of port infrastructure and logistics performance on economic growth: The mediation role of seaborne trade. Journal of Shipping and Trade, 3, Article 1. Mwananziche, J., Myovella, G., Karacuka, M., Haucap, J., & Moshi, G. (2023). Is digitalization a booster for economic growth in Africa? Short run and long run evidence from Tanzania. Telecommunications Policy, 47(10), 102679. Nketiah-Amponsah, E., & Sarpong, B. (2019). Effect of infrastructure and foreign direct investment on economic growth in Sub-Saharan Africa. Global Journal of Emerging Market Economies, 11(3), 183–201. North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University Press. Onwuemeka, I. O., Nwogwugwu, U. C., & Onwuka, E. (2022). Impact of infrastructure investment on economic growth in Nigeria: An autoregressive distributed lag approach. International Journal of Research and Innovation in Social Science, 6(1), 288–298. Owolabi, O. A., Adedeji, A. O., Aderounmu, B., et al. (2023). Do Information and Communications Technology (ICT) and financial development contribute to economic diversification? Evidence from Sub-Saharan Africa. Economic Structures, 12, 5. Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross-section dependence. Journal of Applied Econometrics, 22(2), 265–312. Romer, P. M. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002–1037. Saba, C. S., Ngepah, N., & Odhiambo, N. M. (2024). Information and communication technology (ICT), growth and development in developing regions: Evidence from a comparative analysis and a new approach. Journal of the Knowledge Economy, 15(3), 14700–14748. Kaufmann, D., & Kraay, A. (2024). The Worldwide Governance Indicators: Methodology and 2024 update. World Bank Policy Research Working Paper No. 10952.
CC BY-NC-SA 4.0

This article is published under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Free to read, share, and adapt with attribution.

Article Access
↓ Download PDF 👁 Read PDF
103
Views
60
Downloads
Metadata
ISSN 3153-709X
Tracking ID BJAR_SEP_26_095
Article No. 031
↓ Download JATS XML
Article Info
Journal BJAR
Volume Vol 1, No 4
Year 2026
Type Original Research Article
Licence CC BY-NC-SA 4.0
Share