Institutional Quality and Labour Productivity: Evidence from the Economic Community of West African States Countries

Dimitri Sanga (), Ehouman Williams Venance Ahouakan () and N'goran Assigno Frejus Adje ()
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Dimitri Sanga: United Nations Educational, Scientific and Cultural Organization (UNESCO), Dakar, Senegal, Postal: United Nations Educational, Scientific and Cultural Organization (UNESCO), Dakar, Senegal
Ehouman Williams Venance Ahouakan: Department of Economics, University Jean Lorougnon Guede of Daloa, Daloa, Côte d'Ivoire, Postal: Department of Economics, University Jean Lorougnon Guede of Daloa, Daloa, Côte d'Ivoire
N'goran Assigno Frejus Adje: Department of Economics, University Jean Lorougnon Guede of Daloa, Daloa, Côte d'Ivoire, Postal: Department of Economics, University Jean Lorougnon Guede of Daloa, Daloa, Côte d'Ivoire

Journal of Economic Integration, 2022, vol. 37, issue 3, 540-557

Abstract: This study investigates how institutional quality influences labor productivity in West Africa. Thus, a panel of 15 Economic Community of West African States (ECOWAS) member states over the period 2005-2017 was considered. The panel was analyzed for the primary, secondary, and tertiary sectors. For the empirical analysis, a panel fixed effect regression was conducted based on a neoclassical framework. Results show that institutional quality improvement is overall associated with higher levels of productivity, regardless of the sector. Some specificities were also observed at the sectoral levels. Furthermore, the econometric analysis reconfirms a positive effect of investment and human capital on productivity. Therefore, improving institutional quality would be helpful for productivity growth in this sub-region. This event could enable ECOWAS member states to reap greater benefits from the implementation of the African Continental Free Trade Area agreement.

Keywords: institutional quality; labor productivity; Economic Community of West African States; African Continental Free Trade Area (search for similar items in EconPapers)
JEL-codes: E24 K40 O55 R11 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0859

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