Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS
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...
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Taylor & Francis Group
2024-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2024.2426530 |
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| author | Franck Essosinam Karabou |
| author_facet | Franck Essosinam Karabou |
| author_sort | Franck Essosinam Karabou |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-f2fe802079b84ee3af9cf5512e7b9f56 |
| institution | OA Journals |
| issn | 2332-2039 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-f2fe802079b84ee3af9cf5512e7b9f562025-08-20T02:13:11ZengTaylor & Francis GroupCogent Economics & Finance2332-20392024-12-0112110.1080/23322039.2024.2426530Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLSFranck Essosinam Karabou0Faculty of Economics and Management (FASEG), University of Kara, Kara, TogoInvestment, 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.https://www.tandfonline.com/doi/10.1080/23322039.2024.2426530Investmentgovernanceeconomic growthDOLSWAEMUE22, F21 |
| spellingShingle | Franck Essosinam Karabou Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS Cogent Economics & Finance Investment governance economic growth DOLS WAEMU E22, F21 |
| title | Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS |
| title_full | Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS |
| title_fullStr | Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS |
| title_full_unstemmed | Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS |
| title_short | Institutional quality, investment and economic growth in WAEMU countries: an empirical approach using DOLS |
| title_sort | institutional quality investment and economic growth in waemu countries an empirical approach using dols |
| topic | Investment governance economic growth DOLS WAEMU E22, F21 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2024.2426530 |
| work_keys_str_mv | AT franckessosinamkarabou institutionalqualityinvestmentandeconomicgrowthinwaemucountriesanempiricalapproachusingdols |