INSTITUTIONAL QUALITY. HUMAN CAPITAL AND INDUSTRIAL SECTOR GROWTH IN ECOWAS

Patrick OLOGBENLA

doi:10.2478/subboec-2020-0011

Authors

Patrick OLOGBENLA Obafemi Awolowo University, Nigeria, ologbenlapatrick@gmail.com https://orcid.org/0000-0001-8127-3155

DOI:

https://doi.org/10.2478/subboec-2020-0011

Keywords:

Industrial Sector Growth, Institutional Quality, Human Capital

Abstract

The industrial sector has been identified as a tool for effective economic diversification among developing countries but major challenges of the sector have been the institutional and human capital in these economies. Consequently, the need to re-assess the relationship among the three is pertinent. The study investigates empirically, the impacts of institutional quality and human capital on the industrial sector growth of the ECOWAS. The methodology adopted is quantitative with the use of panel data analysis. Findings from the analysis show that both human capital and institutional quality in the ECOWAS have not supported industrial growth significantly. However, the result shows that macroeconomic variables such as inflation rate and exchange rate have the largest effect on the growth of the industrial sector of ECOWAS. The study used ECOWAS that has not been used by any of the previous authors and the economic bloc is in dire need of economic diversification. It is recommended that ECOWAS countries should improve on their institutional quality and human capital development for them to be effective in promoting the growth of their industrial sector.

JEL classification: J24, J38, L60;

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