Group Formation and Growth Enhancing Variables: Evidence from Selected WAMZ Countries

Douglason G. Omotor ()
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Douglason G. Omotor: West African Institute for Financial and Economic Management (WAIFEM)

A chapter in Accelerated Economic Growth in West Africa, 2016, pp 53-73 from Springer

Abstract: Abstract This paper sets out to empirically examine two issues. First, whether countries which belong in the same geographical area are apparently homogeneous and be pooled together in studying their growth drivers. Second and arising from the first, if homogeneity does not hold, what other growth enhancing variables drive the growth process for the group of selected WAMZ countries. The cross-sectional dependence result suggests dissimilarity among the countries and as such, the selected WAMZ countries should be studied independently. Foreign Direct Investment and democratic variables are prominent in the growth process of the WAMZ. However, Official Development Assistance (ODA) negatively impacted on economic growth of the economies studied, thus suggesting that it is highly fungible. To maximize the returns of government spending on growth and avoid the fungibility of foreign aid, fiscal discipline and consolidation are required for the apparent growth of the WAMZ economies.

Keywords: Growth; Cross-section dependence; Pesaran’s CD test; WAMZ; Dynamic ordinary least squares; Economic integration (search for similar items in EconPapers)
JEL-codes: C21 C22 F13 F15 O2 O4 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:spr:aaechp:978-3-319-16826-5_4

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DOI: 10.1007/978-3-319-16826-5_4

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