Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS
Year: 2024
Type: article
Abstract: Investment, whatever its nature, is an indispensable channel for increasing economic growth. The aim of this paper is to empirically study the effect of institutional quality and investment on economic growth in WAEMU countries. The methodological approach is based on a dynamic panel model covering the period from 2005 to 2020 for all eight WAEMU countries. Results are obtained using the Dynamic Ordinary Least Squares (DOLS). The results show a significant effect of governance indicators and public investment on GDP per capita. Furthermore, the results show that governance indicators modify the effect of investment (public and FDI) on GDP per capita. These results imply that efforts must be made to take full advantage of the positive effects of investment. As the quality of governance is a key factor in attracting and securing investment, policymakers must adopt strategies to improve governance indicators if they are to achieve their growth objectives. The originality of this research lies in highlighting the effects of Institutional quality and investment on economic growth through a DOLS.
Source: Cogent Economics & Finance
Author: Franck Essosinam Karabou
Institution: University of Kara
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,165
OpenAlex ID: W4404197939