Institutional quality, FDI and economic growth in the WAEMU

The main objective of this thesis is to study the effects of institutional quality on economic growth and foreign direct investment in the UEMOA region over the period 2000 to 2020. The approach used is based on a hypothetico-deductive approach. Through previous studies, we have presented the situation of foreign direct investment, economic growth and the quality of institutions in WAEMU countries over the period from 1990 to 2020. We reviewed theoretical and empirical work on the relationship between the key concepts. To test the impact of institutional quality on foreign direct investment and economic growth, we use the panel data econometric method through the use of fixed effects models, random effects models and the method of generalized moments in a dynamic system. The results show a mixed effect of institutional quality on FDI and economic growth in the WAEMU. Host countries need to improve their institutional business environment.