Direct Foreign Investment, Corruption and Mobile subscribers in ECOWAS - 5: A Panel Cointegration Approach

• Main Authors: Zubair, Zulaihatu, Abu Bakar, Nor'Aznin, Azam, Muhammad
• Format: Conference or Workshop Item
• Language: English
• Published: 2017
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/24815/1/2nd%20IRC%202017%2053.pdf; http://repo.uum.edu.my/24815/

It is widely contended that the quality of institution and infrastructure is a significant determinant of foreign direct investment (FDI). With the exception of few studies on corruption, however, empirical research on the link between infrastructure and FDI remain limited, particularly in the context of Economic Community of West African States (ECOWAS).This study aims to examine the linkage between infrastructure (mobile subscribers), corruption and FDI among selected five countries from ECOWAS namely Nigeria, Ghana, Togo, Senegal and Cote dlvoire with the use of panel techniques for the period of 1990-2015. The methodology carried out to achieve this objective involves the panel unit root, panel co-integration and fully modified ordinary least square (FMOLS).The result indicates that there is long run relationship among the series.Corruption and infrastructure are negatively significant on FDI at the long run in the selected ECOWAS countries. The empirical evidence indicates that feeble level of institution (corruption) and infrastructure (mobile subscribers) impedes foreign direct investment inflows in the selected ECOWAS countries.My results confirm that FDI enhancement, role of institution and infrastructure exist not only in the transition nation but also in ECOWAS-5 countries.