Group Formation and Growth Enhancing Variables: Evidence from Selected WAMZ Countries

Part of the Advances in African Economic, Social and Political Development book series (AAESPD)


This paper sets out to empirically examine two issues. First, whether countries which belong in the same geographical area are apparently homogeneous and be pooled together in studying their growth drivers. Second and arising from the first, if homogeneity does not hold, what other growth enhancing variables drive the growth process for the group of selected WAMZ countries. The cross-sectional dependence result suggests dissimilarity among the countries and as such, the selected WAMZ countries should be studied independently. Foreign Direct Investment and democratic variables are prominent in the growth process of the WAMZ. However, Official Development Assistance (ODA) negatively impacted on economic growth of the economies studied, thus suggesting that it is highly fungible. To maximize the returns of government spending on growth and avoid the fungibility of foreign aid, fiscal discipline and consolidation are required for the apparent growth of the WAMZ economies.


Growth Cross-section dependence Pesaran’s CD test WAMZ Dynamic ordinary least squares Economic integration 

JEL Classification

C210 C220 O2 O4 F130 F150 



I wish to express my appreciation to WAIFEM and CREPOL for the funding provided to read this paper at the ACRIA5.


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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.Business Development UnitWest African Institute for Financial and Economic Management (WAIFEM)LagosNigeria

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