Study of the determinants of inclusive economic growth in a sample of West African countries using the generalized method of moments (GMM) model for panel data for the period (2010-2022)
Salam Anwar Ahmed, Najah Hawar Saeed Bazzaz and Omar Mohammed Habeeb
The study examined the factors that influence inclusive economic growth in West African nations between 2010 and 2022. The Generalized Method of Moments (GMM) model was used to analyze panel data. The Human Development Index (HDI) served as a measure of inclusive economic growth. The independent variables included in this study were gross capital formation, foreign direct investment, trade openness, primary school enrollment, and wide money supply. The primary results demonstrate a detrimental correlation between trade openness and inclusive growth, implying that the studied West African nations derive little advantages from globalization. Conversely, increased rates of enrollment in primary school, the development of financial systems, and the inflow of foreign direct investment have a favorable impact on economic growth, specifically aiding disadvantaged groups and diminishing poverty. The collective independent factors account for approximately 44% of the fluctuations in inclusive growth. This study offers significant findings on the factors that influence economic growth in emerging nations, emphasizing the critical role of innovation, education, and financial development as primary determinants.
Salam Anwar Ahmed, Najah Hawar Saeed Bazzaz, Omar Mohammed Habeeb. Study of the determinants of inclusive economic growth in a sample of West African countries using the generalized method of moments (GMM) model for panel data for the period (2010-2022). Int J Finance Manage Econ 2024;7(2):01-06. DOI: 10.33545/26179210.2024.v7.i2.320