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Journal of Economic Integration 2022 September;37(3) :540-557.
DOI: https://doi.org/10.11130/jei.2022.37.3.540
Institutional Quality and Labour Productivity: Evidence from the Economic Community of West African States Countries

Dimitri Sanga1 Ehouman Williams Venance Ahouakan2 N'goran Assigno Frejus Adje 2

1United Nations Educational, Scientific and Cultural Organization (UNESCO), Dakar, Senegal
2Department of Economics, University Jean Lorougnon Guede of Daloa, Daloa, Côte d'Ivoire
Corresponding Author: Ehouman Williams Venance Ahouakan ,Email: ahouakanwilliams@yahoo.fr
Copyright ©2022 Journal of Economic Integration
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.

JEL Classification
K40: General
E24: Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
R11: Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
O55: Africa
Keywords: institutional quality | labor productivity | Economic Community of West African States | African Continental Free Trade Area
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