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Macroeconomic Indicators and Economic Growth in West Africa: Evidence from Dynamic Panel Models

Year: 2025

Type: article

Abstract: This study investigates the effect of macroeconomic indicators on West Africa economies where instability and external shocks constitute significant challenges. It employs dynamic panel models and the Generalized Method of Moments (GMM) procedure to account for endogeneity. The paper applied panel data from 1990 to 2022 on inflation, foreign direct investment, exchange rates, participation in the labour force, international reserves, and the COVID-19 effect. The results suggest that inflation and international reserves are major growth drivers, while exchange rate impact is minimal due to structural and governance constraints. The study, therefore, advocates for flexible monetary policies, improved regulatory frameworks, and strategic investments in human capital to foster the continent’s economic resilience.

Source: International Journal of Economics and Financial Issues

DOI: 10.32479/ijefi.19213

Authors: Sani Abdullahi Sule, Lukman Hakim, Tetuko Rawidyo Putro, Putra Pamungakas, Kazeem Alasinrin Babatunde

Institutions: Sebelas Maret University, Monash University Malaysia

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $300