Are Economic Growth, Institutional Quality and Natural Resources necessities for Human Development? Empirical Evidence from selected West African Economies
Empirical analysis shows human development improves with institutional quality in West African economies, suggesting policy improvements are needed.
Key Points
Human development positively correlates with institutional quality and economic growth in West African countries, indicating growth leads to better education and health outcomes.
Significant negative relationships were found between human capital development and income from natural resources, highlighting the potential pitfalls of resource dependency.
Analysis using Arellano-Bond’s GMM dynamic panel-data method from 2010 to 2021 demonstrated strong results across two models for human development metrics.
Equitable wealth distribution and improved governance are crucial for achieving sustainable development goals and advancing human capital development in the region.