The Impact of Peace Accounting on Economic Growth of Sub-Saharan African Countries

Abstract

The poor economic growth experienced by most developing nations can be attributed to violent conflict which sprang from environmental neglect and misunderstanding. Peace accounting is needed in assessing the extent of loss incurred as a result of insecurity and alternative ways of investing fund to curtail its effects on the economy. This study examined the impact of peace accounting on the economic growth rate of sub-Saharan African countries. The study adopted ex-post facto research design. The population of the study comprised the 48 Sub-Saharan African countries. Seven countries were selected using stratified and purposive sampling techniques. Data used were obtained from the World Bank databank for 35 years (1984-2018). Descriptive and inferential statistics were used for data analysis. Findings revealed that peace accounting had positive and significant impact on economic growth rate (∆GDP)(Adj. R² = 0.0659, F(3, 242) = 18.61, p< 0.05). Cost of Defense had insignificant and positive impact on ∆GDP (β₁ = 0.166, t(245) = 0.75, p > 0.05). Foreign Agricultural Aids had significant and positive impact on ∆GDP (β₁ = 0.378, t(245) = 3.03, p < 0.05). Food Production Index had insignificant and positive impact on ∆GDP (β₁ = 6.098, t(245) = 1.60, p > 0.05). The study concluded that since cost of defense, foreign aids on agriculture, food production index pooled together have positive significant effect on economic performance. It can be drawn that peace is a vital determinant for economic performance. It was recommended that governments of each country should put in place peacekeeping and peace building activities that will promote economic performance.