MACROECONOMIC INDICATORS AND SUSTAINABLE ECONOMIC DEVELOPMENT IN SUB SAHARAN AFRICA

Abstract

The study examined the effect of macroeconomic indicators on Sustainable Economic Development in Sub Saharan Africa. Specifically, the study sought to examine the effect of unemployment rate on sustainable economic development in Sub Saharan Africa. Analyzed the effect of foreign direct investment on sustainable economic development in Sub Saharan Africa. Investigate the effect of broad money supply on sustainable economic development in Sub Saharan Africa and examined the effect of interest rate on sustainable economic development in Sub Saharan Africa. The study employed econometric techniques, including Descriptive Statistics, Augmented Dicker Fuller for Unit Root and the Autoregressive Distributive Lag (ARDL). The result of the study indicate that macroeconomic indicators have (69% long run and 77% short run) significant effects on sustainable economic development in sub Saharan Africa. The study therefore concludes that macroeconomic indicators have been effective short run and long run policy instruments that largely influenced sustainable economic development in sub Saharan Africa. Amongst the recommendations is that federal government through the monetary authorities should regulate the monetary policy rate downwardly to encourage foreign and private investment to improve sustainable economic development in sub Saharan Africa. Continuous fluctuations in interest rate may decrease the confidence of investors due to uncertainty about return on investment. Thus, government should control the interest rates charged by financial institutions to encourage investments and improve human capital development.  Monetary authorities in Sub Saharan Africa should reduce interest rate to attract low interest rates that can encourage credit and boost productivity across the sectors which will improve human capital development in Sub Saharan Africa. Government should take serious steps to control the inflation rate by reducing imports and increasing exports, reducing government expenditures, give priority to agriculture sector, take serious consideration to food prices, increase and utilize energy resources with low production cost and remove security threats.