Institutional Quality, School Enrolment and Mobile Subscribers in Economic Community of West African States (ECOWAS-5): Impact on FDI using Panel Data

Authors

  • Zulaiha A. Zubair School of Economics, Finance and Banking, Universiti Utara, Malaysia
  • Hussin Abdullah Universiti Utara Malaysia

DOI:

https://doi.org/10.26710/reads.v4i1.279

Keywords:

Foreign Direct Investment, Human Capital, School Enrolment, Infrastructure, Mobile Subscribers, Economic Growth

Abstract

Basically, the quality of institution, human capital (schoolenrolment) and infrastructure (mobile subscribers) are significant determinants of foreign direct investment (FDI). With exception of few studies on corruption, however, empirical research on the link between infrastructure, human capital and FDI remain limited. Particularly in the context of Economic Community of West African States (ECOWAS). This paper aims to examine the linkage between infrastructure (mobile subscribers, corruption, schoolenrolment), and Foreign Direct Investment (FDI) among selected ECOWAS countries using panel data techniques for the period of 1990-2015. The methodology carried out to achieve this objective involves the panel unit root, panel cointegration and fully modified ordinary least square (FMOLS). The result indicates that, there is long run relationship among the series. Corruption and infrastructure are negatively significantly related with FDI at the long run in the selected ECOWAS countries. The empirical evidence indicates that feeble level of institutions (corruption) and infrastructure impedes FDI inflows in the selected ECOWAS countries. The results confirm that FDI enhancement through role of institution, school enrolment and infrastructure (mobile subscribers) exist not only in the transition nation but also in the selected ECOWAS countries.

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Published

2020-07-25

How to Cite

Zulaiha A. Zubair, & Hussin Abdullah. (2020). Institutional Quality, School Enrolment and Mobile Subscribers in Economic Community of West African States (ECOWAS-5): Impact on FDI using Panel Data. Review of Economics and Development Studies, 4(1), 39-49. https://doi.org/10.26710/reads.v4i1.279