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Is Good Governance Really a Significant Statistical Issue for Current African Economies? The Case of ECOWAS Countries

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  • Souadou Balde
  • Saidatou Dicko

Abstract

This study examines the triangular relationship between the flows of foreign direct investments (FDIs), public governance as measured by WGIs (Worldwide Governance Indicators) and economic growth in the 15 countries of the Economic Community of West African States (ECOWAS) between 1996 and 2011. The authors conclude that there is a negative relationship between FDIs and economic growth. More importantly, the effect of public governance was analyzed using the estimated coefficients of the variables voice and accountability, quality of regulation, government effectiveness, political stability and absence of violence, rule of law and corruption control, and the results showed that for half of these indicators, governance contributes negatively to the economic growth of ECOWAS countries.

Suggested Citation

  • Souadou Balde & Saidatou Dicko, 2018. "Is Good Governance Really a Significant Statistical Issue for Current African Economies? The Case of ECOWAS Countries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(6), pages 75-89, June.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:6:p:75-89
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    References listed on IDEAS

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    Cited by:

    1. Burak Byükoglu & Ahmet Šit & Ibrahim Halil Ekši, 2021. "Governance matters on non-performing loans: Evidence from emerging markets," PSL Quarterly Review, Economia civile, vol. 74(296), pages 75-91.

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    More about this item

    Keywords

    FDIs; economic growth; GDP per capita; public governance; ECOWAS;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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