Thesis Abstract

Abstract
This research study delves into the relationship between institutional quality, government expenditure, and economic growth in four selected West African countries. The study utilizes panel data analysis to explore how institutional quality and government expenditure impact the economic growth of these countries. The selected countries for this study are Ghana, Nigeria, Senegal, and Cote d'Ivoire. Institutional quality plays a crucial role in shaping a country's economic performance. Strong institutions provide a stable environment for businesses to thrive, attract investments, and promote overall economic growth. On the other hand, weak institutions can hinder economic development by creating uncertainties and inefficiencies in the economy. Therefore, assessing the quality of institutions in the selected West African countries is essential to understanding their economic growth patterns. Government expenditure is another pivotal factor that influences economic growth. Public spending on infrastructure, education, healthcare, and other essential services can stimulate economic activity and enhance productivity. However, inefficient allocation of government resources or high levels of corruption can impede economic growth. Therefore, analyzing the impact of government expenditure on economic growth in the context of the selected West African countries is crucial for policymakers and researchers. By employing panel data analysis, this study aims to provide empirical evidence on how institutional quality and government expenditure interact to affect economic growth in Ghana, Nigeria, Senegal, and Cote d'Ivoire. The panel data analysis allows for a comprehensive examination of the dynamics between these variables over time and across countries. This methodological approach enhances the robustness of the findings and provides valuable insights for policymakers seeking to promote sustainable economic growth in the region. The findings of this study are expected to contribute to the existing literature on the relationship between institutional quality, government expenditure, and economic growth. By focusing on the specific context of West African countries, this research provides valuable insights that can inform policy decisions aimed at fostering economic development in the region. Ultimately, the study aims to offer evidence-based recommendations to policymakers on how to enhance institutional quality, optimize government expenditure, and stimulate economic growth in Ghana, Nigeria, Senegal, and Cote d'Ivoire.

Thesis Overview

In line with the search for the real determinant of economic growth, this work sought to analyze the impact of institutional quality, government expenditure on economic growth, using a panel data analysis for four selected West African Countries (Nigeria, Ghana, Sierra Leone and Burkina Faso) from 2005 to 2013. The study found a positive and significant relationship between some institutions – economic institutions, on economic growth whereas political institutions showed a negative and insignificant effect on economic growth in Nigeria, Ghana, Sierra Leone and Burkina Faso. Also the empirical findings reveal a very positive and significant impact of government expenditure on economic growth and finally, structural policy institution was found to impact positively on the government expenditure outcomes in these countries, throughout the period of study. Based on the findings, the researcher recommends a concerted effort towards sanitizing the various institutions in order to improve on the policy making and execution of the various countries and by implication increase economic growth in countries. Also governments should channel their public expenditure endeavors towards the productive sector (Education, Health etc) and on the provision of the requisite developmental infrastructures. Finally, institutions play a vital role in the achievement of sustainable growth and development.

Keywords: Institutional quality, Government expenditure, Economic growth, Good Governance