Political Instability, Industry and Economic Growth in ECOWAS

According to the economic literature, the influence of political instability on economic activity is ambiguous. In the case of ECOWAS, we attempt to verify whether political instability conditions the effect of industrial performance on growth. The aim of our study is to verify the relationship between industrial performance and economic growth in ECOWAS under the influence of political instability over the period 1990-2018. To this end, we estimate a non-linear model using the Pool Mean Group (PMG) method. Our results show that political instability negatively influences the effect of industry performance on GDP growth in ECOWAS. However, there is a threshold level below which the political atmosphere does not significantly deteriorate the contribution of industrial performance to the ECOWAS economy. This threshold is 0.84% in our study. Copyright© 2024 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.