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The structural transformation is recognized as a key driver of sustainable economic development by researchers and international development agencies. However, it is lagging in West Africa, whereas the diaspora is recognized as a vector for the structural transformation of African economies. Thus, this paper analyzes the contribution of the diaspora to the structural transformation of the economies of the Economic Community of West African States (ECOWAS). The structural transformation is measured by the reallocation of labor from the agricultural sector. Diaspora is measured by the total emigration rate and the high education emigration rate. The Least Squares Dummy Variable Corrected (LSDVC) method applied to a dynamic specification was used on 15 ECOWAS countries from 1990 to 2010. The results revealed that the diaspora attracts labor to the agricultural sector in ECOWAS. While supporting the industrial sector, the diaspora should invest in modern techniques in the agricultural sector, leading to improved productivity gains in this sector and fostering the structural transformation desired by the African Union. [ABSTRACT FROM AUTHOR]

In the competitive world nowadays, financial development (FD) is recognized as one of the important drivers of economic growth via absorptive capacity. The link between FD and foreign direct investment (FDI) inflows in economic community of western african states (ECOWAS) economies is largely ignored in empirical studies. Using panel of 15 ECOWAS countries for the period 1999–2017, with bias corrected least squares dummy variable estimator this study explores the impact of FD on FDI inflows. The empirical findings from this study demonstrate that FD is significant predictor of FDI inflows. The results further suggest that human capital development and trade openness are relevant determinant of FDI influx in ECOWAS countries. The result is robust to alternative indicator of FD; broad money. Functional financial system in the host country is crucial and necessary in attracting foreign capital to the countries; hence FD architecture in the recipient economies should be strengthened. [ABSTRACT FROM AUTHOR]