Institutional Quality, Government Expenditure And Economic Growth: Panel Evidence From Four Selected West African Countries

ABSTRACT

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.