Abstract

Author:
Agama Omachi, Onum Friday Okoh

Doi: 10.26480/egnes.01.2025.46.51

This is an open access article distributed under the Creative Commons Attribution License CC BY 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

This study investigates the effect of CO₂ emissions, Foreign Direct Investment (FDI), and population on sustainable economic growth in six selected ECOWAS countries—Nigeria, Ghana, Liberia, Mali, Senegal, and Niger over the period 2009 to 2023. Using panel data estimation techniques, including fixed effects, random effects, and the Hausman test, the study examines how environmental and demographic factors, alongside investment inflows, influence real GDP. Descriptive statistics reveal significant disparities across countries, with wide variations in GDP, emissions, and population. The fixed and random effects models both show that FDI has a positive and marginally significant effect on economic growth, suggesting that foreign investment plays a moderate role in driving GDP within the sub-region. In contrast, CO₂ emissions and population were found to have statistically insignificant effects on economic growth during the study period. The Hausman test favored the random effects model, indicating that the variations across countries are better explained by random rather than fixed individual differences. Based on these findings, the study recommends policies that strengthen the investment climate, enhance infrastructure, and foster institutional transparency to maximize the benefits of FDI. Furthermore, long-term strategies should include environmentally sustainable development practices and human capital development to harness the full potential of population growth. Future studies are encouraged to expand the scope and variables for a more comprehensive analysis of growth sustainability in West Africa.