Governance and Efficiency in the Transformation From Economic to Social Development in African Countries

ABSTRACT The research adopts the two‐stage Dynamic Network Directional Distance Function (DN‐DDF) model to objectively measure performance in economic development, social development and overall efficiency. In addition, the Malmquist total factor productivity (TFP) index is incorporated to analyse productivity changes during the period from 2018 to 2022. A strategic matrix analysis is further applied, combining countries' overall efficiency and TFP performance to classify 31 African countries into distinct development typologies, based on which concrete policy recommendations are proposed. The findings reveal significant regional disparities in the efficiency of economic‐to‐social development transformation, with outcomes heavily dependent on resource allocation and institutional quality. While some countries exhibit stable economic growth, factors such as severe corruption, weak governance mechanisms and insufficient social investment hinder the effective enhancement of human capital and social welfare. The study also incorporates the Ibrahim Index of African Governance (IIAG) and the Corruption Perceptions Index (CPI) as key variables to evaluate governance quality. Results demonstrate that both indicators provide substantial explanatory power for differences in social development efficiency, underscoring the pivotal mediating role of institutional factors in the process of transforming resources into development outcomes.