Effects of the Quality of Institutions on the Economic Diversification of the States of the Economic and Monetary Community of Central Africa (CEMAC) ()
ABSTRACT
The objective of this paper is to analyze the
effects of the quality of institutions on the economic diversification of the
countries of the Economic and Monetary Community of Central African States
(CEMAC). The panel data used cover the period 1995-2019 and are extracted from
the UNCTAD, WGI and WDI databases of the World Bank. The econometric analysis
of the panel data, using the Pooled Mean Group (PMG) technique, shows that two
variables are significant in the short term: corruption control for Congo and
political stability for Equatorial Guinea. In the long term, corruption control
has a positive impact on economic diversification, while political stability
has a negative effect on economic diversification. The results imply that 1)
the leaders of CEMAC countries should ensure political stability by adding a
measure of good governance to improve economic diversification, and 2) through
the fight against corruption, the public authorities should adopt rational
frameworks that enable them to effectively strengthen economic diversification.
Share and Cite:
Loubassou Nganga, M. (2021) Effects of the Quality of Institutions on the Economic Diversification of the States of the Economic and Monetary Community of Central Africa (CEMAC).
Theoretical Economics Letters,
11, 84-99. doi:
10.4236/tel.2021.111007.