| Summary: | Foreign capital inflow, infrastructure and good institution are significant variables in
explaining long run growth in both developed and developing countries of the world.
However, capital gap, decay infrastructures and weak institution has been identified as
the main bane affecting the process of growth and development in ECOW AS
economies. This study examined the impact of foreign capital inflows, infrastructures
and the role of institutions on economic growth across ECOWAS -15 nations with the
use of a panel and cross-section for the period of 1981-2017. In line with the Augmented
Solow Model, the relationship between capital inflows, infrastructures and the role of
institutions on economic growth in the ECOW AS member countries are investigated.
To achieve the objectives of this study, quantitative method of analysis was used. The
m thods employed are dynamic panel data using Panel Dynamic Ordinary Least Square
(PDOLS), Pool mean Group (PMG), Generalised Ordinary Least Square (GLS), and
panel-corrected standard errors (PCSEs) to test for the long run relationship. Findings
from the Dynamic panel models result showed that economic growth in ECOW AS
countries are determined by foreign capital inflows, infrastructures, and strong
institution similarities, human capital development, domestic investment and exchange
rate. However, weak institutional quality and capital flight among the ECOWAS
countries in West Africa have been hindering economic growth of ECOWAS
economies. On these premises, th tudy suggested that ECOW AS countries must
address the issue of decay infrastructures, capital flight and weak institutional structures
within their region in order to enhance sustainable growth in ECOWAS economies.
Based on these findings, some policy issues were highlighted, and policy
recommendations were developed, economic policies should be targeted at providing a
strong institution, encouraging foreign capital a cumulation and, human capital
development, especially on foreign direct investment, official development assistance
that exerts a positive impact on economic growth of the sub-region. Therefore, the
training required to prepare the labour force to work with new technologies and promote
efficient enterprise for ECOWAS economies to compete with emerging countries and
developed economies.
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