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We investigate the impact of private credit expansion and contraction on the unemployment rate in Economic Community of West African States (ECOWAS) countries.

Credit expansion and contraction are measured using a three-level criterion. The fixed effect panel regression model was used to estimate the impact of private credit contraction and expansion on the unemployment rate in ECOWAS countries.

Private credit contraction significantly increases the unemployment rate in ECOWAS countries. Private credit expansion does not have a significant effect on the unemployment rate. Real GDP growth has a significant negative effect on the unemployment rate which supports the prediction of the Okun’s Law while the inflation rate has a positive and insignificant effect on the rate of unemployment in ECOWAS countries which contradicts the prediction of the Phillips curve.

Policymakers in ECOWAS countries need to be cautious when introducing policies that lead to private credit contraction as it could increase unemployment. Policymakers in ECOWAS countries should also find the “threshold” below which private credit contraction will worsen the unemployment rate and introduce policy measures to ensure that private credit contraction does not fall below the threshold.

The literature has not examined the factors leading to tight labor markets or unemployment in West African countries.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2023-0939.

This paper examines the impact of regional and non-regional trade on economic growth using annual data from Economic Community of West African States (ECOWAS) member countries for the period 2007 to 2017.

Trade data were decomposed into regional (trade among ECOWAS Member States) and non-regional (trade between ECOWAS Member States and the rest of the world). We used the dynamic system GMM to estimate the models and introduced exchange rate, unemployment rate, population growth and gross capital formation as controlled variables.

The results revealed that the estimated coefficient of ECOWAS regional trade is statistically significant and positive in predicting growth, while the non-regional trade coefficient is negative and not statistically significant in predicting growth. Other predictors of growth introduced into the model as controlled variables, such as exchange rate, unemployment rate, population growth and gross capital formation, displayed mixed results. More importantly, population growth, unemployment and exchange rate depreciation hurt economic growth, while gross capital formation promotes economic growth.

The findings provide strong support in favour of the Krugman (1991) hypothesis that regional trade agreements (RTAs) are a better alternative to global trade.

Our decision to disaggregate ECOWAS trade is unique and influenced largely by the objective of the study, which is to establish the type of ECOWAS trade that is a good predictor of growth. The evidence from our findings support the theory that RTAs are a better catalyst to economic growth.

The purpose of this paper is to investigate the currency union (CU) effect on aggregate intra-trade in the Economic Community of West African States (ECOWAS) and on bilateral trade among individual countries using the gravity model.

Using panel dynamic ordinary least square, we examined the short- and long-run CU effect on aggregate intra-ECOWAS trade and bilateral trade among ECOWAS countries from 1995 to 2010. Chow poolability test was conducted for the appropriateness of pooling the cross-section parameters as against individual model. The augmented Dickey–Fuller (ADF) test; the Phillips–Perron (PP) test; and the Kwiatkowski, Phillips, Schmidt and Shin (KPSS) test were conducted on the individual data series, and the Levin, Lin and Chu test; the Im, Pesaran and Shin test; the Breitung test; and the Hadri test were used for testing cross-sectional independent panel unit root tests. Kao panel cointegration test was conducted to identify long-run relationships.

We found evidence of significant positive CU effect on aggregate intra-ECOWAS trade. The estimates also show that Benin, Burkina Faso, Niger, Senegal and Togo trade more with countries they share common currency with than what they would have been in both short and long run. We again observed that CU is insignificant in explaining Cote d’Ivoire, Mali and Senegal intra-trade with ECOWAS countries, though their observed intra-trade with ECOWAS is relatively high which is found to be explained by export diversification.

The findings reveal that CU is good for aggregate intra-regional trade though some individual members respond negative to CU. The finding of diversification as a necessary tool to increase intra-regional trade imply that as effort of introducing single currency is being pursued rigorously, effort to diversify export or trade complement should not be overlooked.

There exist panel studies on CU on aggregate intra-regional trade in ECOWAS. However, there is a need to have country level study to identify CU effect on each country, as it is sensitive to country-specific factors which are unobservable in time series analysis of group of countries. Also, our group estimate differs in methodology in the sense that the dynamic generalised least takes care of endogeneity in trade gravity literature.

The market-based monetary policy framework has been favoured by Economic Community of West African States (ECOWAS) economies. Hence, this study aims to investigate the effect of monetary policy channels on the sectoral value added and sustainable economic growth in ECOWAS. Data from the World Bank and International Monetary Fund over 2013–2019 were sourced for thirteen member countries. ECOWAS is found to have very high inflation level, interest and exchange rates.

The study adopted the Driscoll–Kraay fixed-effects ordinary least squares regression (OLS) estimator.

The findings revealed that while the effect of monetary policy channels on the agricultural sector value added is largely heterogenous and significantly in-elastic, the one on the industrial and services sectors are overwhelmingly homogeneous and negative, but insignificant for the services sector. Moreover, the effect of monetary policy channels on sustainable economic growth is also homogeneously asymmetric, with imminent stagflation, while the interactive effects of monetary policy channels are heterogeneous on sustainable economic growth and economic sectors. Therefore, an inflation targeting monetary policy stance is generally recommended with prioritised exchange rate stabilisation amid sufficient fiscal space.

This is amongst the first studies to investigate monetary policy channels, sectoral outputs and sustainable growth in the ECOWAS region with a rigorous analysis and found implications for policy.

The importance of the security-political strategies of Africa's subregional organisations was accentuated in 2002 with the launching of the African Union's Common African Defence and Security Policy (CADSP), which will include, among other things, the establishment of a Continental Early Warning System and an African Standby Force. From that point on, subregional organisations were to be the building blocks of an all-African approach to security politics. The strategies of these organisations range from the top-down approach of the Economic Community of West African States (ECOWAS) to the bottom-up approach of the Intergovernmental Authority on Development (IGAD). Taking into account the particular characteristics of Africa's regional conflicts, this article examines the relevance for the CADSP of the approaches to conflict prevention and resolution of the latter two organisations. It analyses, first, the challenges facing the African Standby Force through an examination of ECOWAS's security-political strategy, and, second, the challenges facing the Continental Early Warning System through a look at IGAD's strategies. It suggests that two main issues are of critical relevance for the success of the CADSP. First is the lack of compatibility between the all-African strategy and the strategies of the various subregional organisations. Second is the lack of compatibility between formal processes of integration and trans-state regionalism within the continent. Although formal processes of integration are important, informal processes often play a much stronger role, undermining much of the progress made by the formal processes.

This paper aims to explore how regional organizations manage its affairs, peace-building and economic development focussing on a crucial analytical dimension: the link between global order, regional integration and multi-culturally diverse stakeholders.

This conceptual paper focusses on the Economic Community of West African States (ECOWAS) by grounding the arguments based on the conceptualization of regional integration and “stakeholder management”. It offers an exploration of concepts of the “new global order”, “multilateralism”, “institutions”, effective stakeholder collaboration and cross-cultural management.

Defined in terms of EU-style institutionalization’ ECOWAS is one of the modes of regionalism classified as failed. The organization has struggled with the member-states internal crisis, inter-state border crisis, a growing army of unemployed youths, high political-instability, militant terrorism, cybersecurity and farmers-herders conflict. Also, it has a poor implementation of treaties and poor cultural communications.

Besides contributing to the emerging interest in the understanding of how regional organizations improve organizational efficiency, this study develops an interest in stakeholder management from the perspective of political, economic and peace-building organizations with different national, cultural and political experiences.

The Economic Community of West African States (EOWAS) is a major attempt by 16 lesser developed countries (LDCs) to gain economic advantages through regional co‐operation and to improve their international leverage on several factors with multinational companies, foreign governments, an inter‐governmental organizations. This group of mostly young nations has survived uniquely difficult circumstances and is now relaunching its efforts at economic reform, trade liberalization, and political dialogue. Although there are problems, the regional economy it covers offers significant opportunities for international marketers.