francophone

Macroeconomic Indicators and Economic Growth of West African Countries: A Case of Anglophone Versus Francophone Regions (Published)

This study examines the impact of selected macroeconomic indicators on economic growth in West African countries, both collectively and within Francophone and Anglophone sub-regions. Using a static panel least square regression approach, the analysis covers the period 2012–2022 for nine Francophone and four Anglophone countries. The findings reveal that trade openness, foreign direct investment (FDI), and exchange rates significantly influence economic growth when West Africa is considered as a whole. However, within the Francophone region, these variables were statistically insignificant, with only domestic investment, proxied by gross fixed capital formation (GFCF), showing significance. Conversely, in the Anglophone region, FDI and exchange rates were significant growth drivers, whereas trade openness and GFCF were not. The study suggests that macroeconomic factors in Anglophone countries and domestic investment in Francophone countries largely drive regional growth. To enhance economic performance, the study recommends increasing FDI inflows, promoting trade openness, and stabilizing exchange rates, particularly in the Anglophone region. Policymakers should encourage intra-regional and international trade while removing barriers to FDI, especially in industrial sectors that drive development. The exchange rate should be carefully managed, given its crucial role in Anglophone region growth. Additionally, Francophone governments should enact policies that ease domestic investment processes and encourage greater openness to FDI. Since trade openness and FDI align with expected growth patterns, fostering these elements in the Francophone region is essential for sustainable economic progress across West Africa.

 

Keywords: anglophone, francophone, macroeconomic indicators, static panel