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This study examines the conditional effect of trade liberalization on economic growth in West
Africa, with a particular focus on the moderating influence of institutional quality. A panel dataset
covering 16 West African countries over the period 2017–2022 is employed to estimate a dynamic growth
model using the System Generalized Method of Moments (System-GMM), which effectively addresses
endogeneity and growth persistence. Robustness checks are conducted using Pooled Ordinary Least
Squares (POLS) and Fixed Effects (FE) estimators. The results reveal three key findings. First, trade
liberalization has a positive and statistically significant effect on economic growth in the region. Second,
although institutional quality exhibits a negative direct effect, likely due to short-run adjustment and
compliance costs, the interaction between institutional quality and trade liberalization is positive and
strongly significant, demonstrating that governance effectiveness is critical for harnessing the growth
benefits of openness. Third, the negative coefficient estimates for financial development and
industrialization indicate structural inefficiencies, including credit misallocation and a continued
dependence on low-value, resource-based production. Overall, the findings suggest that while West
Africa possesses substantial potential for trade-driven development, meaningful gains remain constrained
by weak institutional capacity and limited structural transformation. The study recommends targeted
governance reforms, improved regulatory enforcement, strategic reallocation of financial resources
toward high-value export sectors, and accelerated industrial diversification to ensure that trade
liberalization translates into sustained, inclusive economic growth.
