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Regional integration and growth: New empirical evidence from WAEMU

Author

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  • Jonathan E. Ogbuabor

    (Department of Economics, University of Nigeria, Nsukka, Nigeria and Department of Economics and Related Studies, University of York, Heslington, York, UK)

  • Onyinye I. Anthony-Orji

    (Department of Economics, University of Nigeria, Nsukka, Nigeria)

  • Oliver E. Ogbonna

    (Department of Economics, University of Nigeria, Nsukka, Nigeria)

  • Anthony Orji

    (Department of Economics, University of Nigeria, Nsukka, Nigeria)

Abstract

This study provides a pioneer analysis of the growth effect of WAEMU integration at the econometric level, unlike the extant literature that relied on descriptive analysis of the sub-region’s trade statistics. The study used robust instrumental variables system GMM regression in the framework of a cross-country growth model and annual panel data for the period 2000 to 2015. Contrary to the widely held view that regional economic integration fosters economic growth of the participating countries, we did not find any empirical support for a positive growth impact of WAEMU integration in West Africa, which may be due to a variety of factors that mainly point to the characteristics of the WAEMU economies. However, the results indicate that foreign direct investment (FDI), institutional quality, capital, labour and the initial real per capita GDP are important drivers of growth in the sub-region. Interestingly, the results further indicate that FDI and institutional quality are the channels through which WAEMU integration may impact on growth in West Africa. The study therefore concludes that policy reforms towards improved institutions and increased FDIs will enhance economic growth in West Africa.

Suggested Citation

  • Jonathan E. Ogbuabor & Onyinye I. Anthony-Orji & Oliver E. Ogbonna & Anthony Orji, 2019. "Regional integration and growth: New empirical evidence from WAEMU," Progress in Development Studies, , vol. 19(2), pages 123-143, April.
    • Handle: RePEc:sae:prodev:v:19:y:2019:i:2:p:123-143
    DOI: 10.1177/1464993418822883
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    Cited by:

    1. Jonathan E. Ogbuabor & Anthony Orji & Charles O. Manasseh & Onyinye I. Anthony-Orji, 2020. "Institutional Quality and Growth in West Africa: What Happened after the Great Recession?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 26(4), pages 343-361, November.
    2. Rekha Ravindran & Suresh Babu Manalaya, 2023. "Does Premature Deindustrialisation Stall Growth? Evidence from Sub-Saharan Africa," Progress in Development Studies, , vol. 23(1), pages 65-81, January.
    3. Davidmac O. Ekeocha & Jonathan E. Ogbuabor & Anthony Orji, 2022. "Public infrastructural development and economic performance in Africa: a new evidence from panel data analysis," Economic Change and Restructuring, Springer, vol. 55(2), pages 931-950, May.
    4. Davidmac O. Ekeocha & Jonathan E. Ogbuabor & Oliver E. Ogbonna & Anthony Orji, 2023. "Economic policy uncertainty, governance institutions and economic performance in Africa: are there regional differences?," Economic Change and Restructuring, Springer, vol. 56(3), pages 1367-1431, June.
    5. Oliver E. Ogbonna & Jonathan E. Ogbuabor & Afamefuna A. Eze & Walter O. Ugwuoke, 2021. "Moderating Effect of Institutional Quality on Relationship Between Foreign Aid and Economic Growth in Africa," Politická ekonomie, Prague University of Economics and Business, vol. 2021(4), pages 457-478.

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