The ultimate objective of the study was to investigate the effects of being landlocked on the living standards in Sub-Saharan African (SSA) countries from 1991 to 2019. Adopting the two-step estimation technique of System GMM (generalized method of moments), the study found that being landlocked has a negative and significant effect on the living standards in SSA countries when using GDP per capita as the living standard measure. Moreover, the historical living standard experiences of SSA countries have a positive and significant influence on the current living standard level. In addition, the population growth rate has a positive and significant effect on the living standards in SSA countries. On the other hand, the official exchange rate, broad money as a percentage of GDP, and inflation have a negative and significant effect on the living standards in SSA countries. Generally, the estimated result reveals the existence of a significant variation in the living standards in landlocked and coastal SSA countries. This study suggests that regional integration between landlocked and transit countries should be improved to minimize entry costs and increase access to global markets for landlocked countries. We argue that this study is of interest to landlocked and coastal countries to increase trade integration and promote the development of both groups, and it will contribute to the scarce empirical evidence.

This paper examines the effect of governance in Sub-Saharan African (SSA) countries. Specifically, this study investigates (i) the interacting impact of government efficiency, regulatory quality, and the rule of law alongside other socioeconomic variables to determine foreign capital inflow (FCI) based on each economic SSA bloc; and (ii) the characteristic drivers of FCI, impacting economic growth in the SSA countries. Descriptive statistics, static models, least square dummy variables (LSDVs) and the dynamic system general method of moment (GMM) were employed as the study’s estimating techniques. Based on the result of the LSDV, food security and the rule of law significantly impact FCI in the sub-economic blocs in the region. Only six countries across the four economic blocs responded to food security and the rule of law in the model. The dynamic system-GMM provided evidence of five socioeconomic variables and three governance variables contributing to FCI. The findings revealed (i) regulatory quality and the rule of law are governance variables that significantly impacted FCI; and (ii) food security failed to significantly impact FCI in the SSA region. However, inflation, life expectancy, the human capital index, exchange rate and gross domestic product (GDP) growth impacted FCI significantly. In the aggregate, inflation, regulatory quality, exchange rate and the human capital index exhibited positive relationships, while other variables such as life expectancy, government effectiveness and the rule of law appeared significant but inversely impacted FCI in the SSA region. The key policy implication recommendation from this study is that a good legal framework could moderate the flow of foreign capital in favour of growth as it creates a strong foundation for sustainable economic development in the region.