Abstract
This study analyses the effect of industrialisation on the human development in Sub-Saharan Africa. In measuring human development, the human development index is used as a proxy to that effect. The Human Development Index is comprised of economic, educational and health indices. Although the human development index has been subjected to criticism especially in relation to methodological problems although, the World Bank still recognises it as a proper measure of human development. The econometric applied in this paper is panel data, particularly the fixed effects model and pooled ordinary least squares. The results of these two models are compared to some extent, although pooled ordinary least squares is used as a benchmark. The fixed effects model indicates that industrialisation has a negative effect on the human development index and its components in sub-Saharan Africa. The fixed effects model results for either model, per sub-region or time interval, do not show any positive effect of industrialisation on the human development index. In addition, the effect of industrialisation on HDI and its components increased significantly in the second time interval for both pooled ordinary least squares and the fixed effects model. On some instances, pooled ordinary least squares and fixed effects models shows different results and therefore makes it difficult to draw clear, definite and policy recommendation. These to a larger extend could be as a result of heterogeneity within the sub-regions and countries. There is no straightforward relationship between industrialisation and human development in SSA...
M.Com. (Development Economics)