Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/321661 
Year of Publication: 
2024
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 12 [Issue:] 1 [Article No.:] 2426530 [Year:] 2024 [Pages:] 1-14
Publisher: 
Taylor & Francis, Abingdon
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. Investment is an indispensable channel for increasing economic growth. The goal of our research paper is to empirically study the effect of institutional quality and investment on economic growth in WAEMU countries. 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.
Subjects: 
DOLS
economic growth
governance
Investment
WAEMU
JEL: 
C23
D73
O55
E22, F2
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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