Government Spending and Institutional Quality as Drivers of Inclusive Development in Sub-Saharan Africa: A Panel Data Approach

This dataset was developed as part of a research project investigating the roles of government spending and institutional quality in shaping inclusive development outcomes in Sub-Saharan Africa. It includes two composite indices: the Inclusive Development Index (IDI) and the Institutional Quality Index (INSTQ) for 43 Sub-Saharan African countries covering the period from 2000 to 2023. The Inclusive Development Index (IDI) was constructed using five normalized and equally weighted indicators: Human Development Index (HDI), employment rate, inverted Gini coefficient (to reflect income equality), access to electricity and clean fuels, and GDP per capita. The Institutional Quality Index (INSTQ) was computed from four governance dimensions sourced from the Worldwide Governance Indicators—government effectiveness, rule of law, regulatory quality, and control of corruption. Each component was normalized and equally weighted to ensure comparability across countries and years. These indices were used in panel econometric analyses, including Panel ARDL and System GMM, to explore both short-run and long-run dynamics of inclusive development in the region. The dataset supports empirical research on equity, governance, and sustainable development policy in low- and middle-income contexts. weights of 0.2 was attached to each of the variables for the construction of Inclusive development index. Response Rates: this is a secondary data Presence of Common Scales: No scales None. Smallest Geographic Unit: 46