Measuring state—business relations in sub-Saharan Africa

Many factors contribute to economic growth in a measurable way, but the underlying drivers are more difficult to measure. This chapter suggests that an effective state—business relationship (SBR) is one important underlying factor that drives a more optimal allocation of resources in the economy, including an increased effectiveness of government involvement in supporting private sector activities and removing obstacles. The aim is to measure the key factors associated with effective SBRs for 20 sub-Saharan African (SSA) countries over the period 1970–2005.