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DOMESTIC INVESTMENT AND ECONOMIC GROWTH IN ECOWAS COUNTRIES: Do Institutions and Governance Matter?

DOMESTIC INVESTMENT AND ECONOMIC GROWTH IN ECOWAS COUNTRIES: Do Institutions and Governance Matter?

 

Abstract: The ECOWAS region, over the past decades years, has been battling with poor economic performance and growth experts recently have opined that strengthening institutions as well as good governance are paramount in salvaging such economies. It is against this backdrop that the present study is premised empirically. Results show that making public office holders accountable is a sine-qua-non for increased per capita GDP growth in the region as the channel through which institutions affect growth is investment that is dominated by public investment. Weak institutional framework and poor governance account for the low per capita GDP growth in the region. Consequently, strengthening the region’s institutions and instituting a good governance system will put the region on the path of growth and development.

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