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

Author

Listed:
  • Sanga, Dimitri

    (United Nations Educational, Scientific and Cultural Organization (UNESCO), Dakar, Senegal)

  • Williams Venance Ahouakan, Ehouman

    (Department of Economics, University Jean Lorougnon Guede of Daloa, Daloa, Côte d'Ivoire)

  • Assigno Frejus Adje, N'goran

    (Department of Economics, University Jean Lorougnon Guede of Daloa, Daloa, Côte d'Ivoire)

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.

Suggested Citation

  • Sanga, Dimitri & Williams Venance Ahouakan, Ehouman & Assigno Frejus Adje, N'goran, 2022. "Institutional Quality and Labour Productivity: Evidence from the Economic Community of West African States Countries," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(3), pages 540-557.
    • Handle: RePEc:ris:integr:0859
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    Keywords

    institutional quality; labor productivity; Economic Community of West African States; African Continental Free Trade Area;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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