Mobilization of Private Financing and Industrialization: Evidence From 15 African Countries.

Abstract:

Purpose: This study investigates the impact of private financing on industrialization in Africa. Method: The study employs the Generalized Least Squares (GLS) method to analyze a panel dataset of 15 African countries, addressing potential correlations between error terms and unobserved heterogeneity. Results and Findings: The findings reveal a positive correlation between gross domestic savings, manufacturing value-added, and the industrialization rate. Conversely, personal remittances negatively affect manufacturing value-added and the industrialization rate. Recommendation: It is recommended that policymakers prioritize the private sector by implementing policies that promote domestic savings and encourage their involvement in infrastructure development through innovative public-private partnerships. Originality: This study contributes to the existing literature by providing empirical evidence on the relationship between private financing and industrialization in Africa, utilizing advanced econometric techniques to address methodological challenges, and offering practical policy recommendations for fostering economic development in the region.