With regard to all African countries, WAEMU is one of the economic zones that has experienced the strongest economic growth in the last two decades. According to Ali and Son (2007), growth is inclusive when associated with high average income and equity. This study tries to verify this assertion in the WAEMU. Specifically, it is interested in the role of governance and unemployment over the period 2002-2016, and tests the effects of their interaction. Using the System Generalized Method of Moment (system-GMM), the results show that the quality of institutions contributes significantly to the inclusivity of growth and provides effective information on the adverse effects of unemployment. The results also suggest that good governance through the six indicators of Worldwide Governance Indicators (WGI) offers opportunities for all, promotes employability and reduces unemployment in WAEMU.
Keywords: Inclusive growth, governance and institutional quality, unemployment, GMM system, WAEMU.