Abstract

BAYESIAN PANEL DATA PARADIGM ON DETERMINANT OF WEST AFRICAN ECONOMIC GROWTH

I. Oloyede

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This study investigates impacts of the growth determinants of West African economy via Bayesian mixed panel data estimator. The choice of Bayesian estimator is not by accident since it has been established in the literature that it performed better than the frequentist. Estimates were obtained calculating the location and spread of Markov Chain Monte Carlo of Bayesian panel data. The study found out that Capital services at constant 2011 national prices, Welfare-relevant TFP at constant national prices, Share of labour compensation in GDP at current national prices and Real internal rate of return contribute negatively towards economy of west Africa countries during the period of study, this implies that governments of west African countries need to put all hands on deck to improve the economy of the region. They to harness resources and reach common goal for speed developments. Thus, TFP at constant national prices, Average depreciation rate of the capital stock, Real consumption at constant 2011 national prices, Real domestic absorption at constant 2011 national prices and Capital stock at constant 2011 national prices contributed minimally and positively towards economy of west African countries during the 17years period of study. The therefore recommend that there should be total overhauling of the region. Keywords: Markov Chain Monte Carlo Method, Heteroscedasticity, Gibbs Sampler, Bayesian Inference.

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