Paper Title
Relationship Between Foreign Aid and Foreign Direct Investment: The Role of Institutional Quality

Abstract
The relationship between Foreign Direct Investment and Foreign Aid is theoretically ambiguous: foreign aid raises the marginal productivity of capital when used to finance complementary inputs (like public infrastructure and human capital investments), but aid may crowd out private investments when it comes in the form of physical capital transfers. This study examines the possible linkage between foreign aid inflow and foreign direct investment (FDI) to member country of ECOWAS. The sample period used was 1996-2016 for 15 countries. The Pooled Mean Group approach was used and the findings suggest that total aid has a positive effect on FDI inflows. Also, the quality of institutions in these countries affects the flows of FDI into the sub-region. Key words- ECOWAS, FDI, Foreign aid, Pooled Mean Group