Effects of Investments on the Economic Diversification of the States of the Central African Economic and Monetary Community (CEMAC)

Abstract

This study aims to answer the question of whether investments have an effect on the economic diversification of the countries of the Economic and Monetary Community of Central Africa (CEMAC). The panel data used cover the period 1995-2019 and are extracted from the UNCTAD, WGI and WDI databases of the World Bank. To address the research question, we used panel data econometrics. The results obtained show that private investment improves economic diversification, while public investment hinders economic diversification in the CEMAC. These results imply 1) the need to enhance the attractiveness of private investment in all sectors of the economy and 2) the importance of improving state governance through a shift from the rentier to the developmental state.

The relationship between financial sector development and individual economic well-being in Mena region: Panel feasible generalized least squares between 2005 and 2022

“…Nevertheless, the study also found a negative relationship between Market Capitalization of Listed National Companies (DM) and GDP per capita, suggesting that a higher concentration of market capitalization among listed national companies may not necessarily translate into higher individual economic well-being. This finding reinforces the notion that diversification of economic activities and investments is essential, as emphasized in the literature by various scholars (Almeida & Gonçalves, 2022;Loubassou & Mbongo, 2021).…”

Endogenous Inflation in the UEMOA Zone: Trade-Off Between Inflation and Output

“…Finally, Loubassou and Tendelet (2018) show through the Hansen method on data from Cameroon and Congo-Brazzaville during the period 1986-2015 that the inflation threshold level is 5% and 10% respectively for these two countries. Below these thresholds, any expansionary monetary policy measure would favor economic growth.…”