Policy Mix, Convergence and Growth in ECOWAS Countries

Abstract

This paper is just a sample template for the prospective authors of IISTE Over the decades, the concepts of This study attempts to examine the convergence of macro-economic policy variables among Economic Community of West African Countries (ECOWAS); examines the nature of convergence of macroeconomic policy variables among ECOWAS countries and analyze  the impact of convergence in policy mix on growth in ECOWAS countries. This was in view of examining policy mix, convergence and growth in ECOWAS countries. The study deploys the endogenous growth framework of Solow-Swan (1956) as modified by Ramsey using the Cobb Douglas production function for both the convergence equation and growth equation.  The study employed Panel Ordinary Least Square method on panel annual time-series data and analyzed with fixed-effect since a common attribute is expected from the selected countries. Panel unit root data tests were conducted in order to determine whether the series has a problem of unit-root using Dickey-Fuller. The finding of the study showed that all the selected countries diverge in their fiscal variables while they converge in monetary policy. Hence the study recommended that further studies can also conduct their research on regional basis in order to account for appropriate possibility for economic integration within the region among African countries.

Key Words: Policy Mix, Convergence, Economic Growth, ECOWAS, Regional Integration.