Effects of the Quality of Institutions on the Economic Diversification of the States of the Economic and Monetary Community of Central Africa (CEMAC)

Nganga, Maixent Loubassou

doi:10.4236/tel.2021.111007

Cited by 4 publications

(4 citation statements)

References 23 publications

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“…Similarly, Ebi and Eke (2018) emphasized that economic diversity can be achieved by strengthening the indicators of corruption control, political stability, rule of law and government effectiveness. Nganga (2021), as in the studies of Ebi and Eke (2018), stated that corruption control would contribute to economic diversification in the long run. Vu (2022) also supports our empirical inferences.…”

Section: Conclusion and Policy Recommendationmentioning

confidence: 93%

Do Economic Complexity Drivers Differ by Income Level? Insights From a Global Perspective

Şanlı,

Gülbay Yiğiteli,

Ergün Tatar

2024

Sage Open

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This study examines the drivers of economic complexity for 97 countries over the period 1995 to 2020 by income sub-groups. To investigate determinants of complexity, we develop five novel indexes. Using two-step system GMM (2SGMM) regression with the robust standard errors method, we found that institutional quality, health dimensions and macroeconomic conditions were enormously significant economic complexity drivers. However, the findings vary according to the country groups with different income levels. While the importance of openness and health dimensions are prominent in low and middle-income countries, capital stock and openness are the principal elements in the high-income group. The institutional quality is statistically significant and considerably affects on complexity in each group and across the panel. The education dimension of human capital has a positive effect only in the high-income group and across the panel, while it is negative in the middle and low-income groups, but its effect is weak. Moreover, these findings are valid in the long run. From a policy perspective, the findings suggest that macroeconomic policies focused on institutional quality, openness and healthcare as critical components of economic complexity should be crucial goals, especially for low and middle-income countries. JEL Classification: O11, O43, I15, I25.

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Section: Conclusion and Policy Recommendationmentioning

confidence: 93%

Do Economic Complexity Drivers Differ by Income Level? Insights From a Global Perspective

Şanlı,

Gülbay Yiğiteli,

Ergün Tatar

2024

Sage Open

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“…Thirdly, to our knowledge, no empirical study has addressed this issue for landlocked African countries by analysing simultaneously the institutional and geographical aspects of export diversification. A few studies (Nganga, 2021, Bah et al, 2021, Fosu, 2021, Matallah, 2020 have addressed the issue, but not only did they focus on Sub-Saharan Africa, CEMAC and MENA, but they also ignored the geographical aspect, which is very important in the analysis of international trade.…”

Section: Introductionmentioning

confidence: 99%

“…The results ofCabral and Veigas (2010) come to the same conclusion, stating that institutional factors such as corruption, transparency and accountability play an important role in the ability of African countries to diversify. In his study on the effects of institutional quality on economic diversification in CEMAC countries,Nganga (2021), using the Pool Mean…”

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confidence: 99%

Export diversification in Africa's landlocked countries: governance vs geography

Stephane,

NKOA

2024

Preprint

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The objective of this paper is to analyse the effects of governance and/or geography on export diversification in Africa's landlocked countries (ALDCs). To do so, we used panel data over the period 1996–2021. The Driscoll-Kraay (1998) method is used for the estimations. The results show that for governance, only the political stability variable has a significant effect on export diversification in the presence of the geography variables. However, with regard to the geographical variables, proximity to the large international market and population size have positive and significant effects on export diversification, whereas the remoteness of access to the sea variable and the natural resource rents variable have negative and significant effects on export diversification in the ALDCs in the presence of the governance variables. We can conclude that in the ALDCs, geography prevails over governance in line with the institutions versus geography debate, as it is the geographical variables that best explain export diversification compared to the governance variables.

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“…Although factors affecting such diversification efforts are mainly economic, there are also demographic, political, and institutional factors that influence diversifications efforts. Income levels and investments have an important relationship with economic diversification (Esanov, 2012;Imbs & Wacziarg, 2003;Klinger & Lederman, 2011;Nganga, 2021). In terms of demographics, population growth reflects an expansion in the labor force as well.…”

Section: Introductionmentioning

confidence: 99%

Does political will have the potential to improve GCC economic diversification?

Alshuwaiee,

Alshammari

2023

JGAPS

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Objectives: This study investigates the role of political will on economic diversification throughout the Gulf Cooperation Council [GCC] countries. The study examines determinants of economic diversification, including economic, demographic, political, and institutional factors. Method: The applied model was estimated using pooled ordinary least squares [OLS], random- and fixed-effect techniques, as well as the Hausman test. According to the appropriate fixed-effect estimation model. The data sample covered the six GCC countries throughout the period from 1996 to 2019. Results: The findings proposed that increased political will can lead to increase of the economic diversification efforts across the GCC region. Particularly, higher government effectiveness indicates lower dependence on oil rent. However, results confirmed that the impact of political stability tends to be associated with greater dependence on oil rent. This suggests that the GCC governments tend to deviate from the process of economic diversification when political environments are improved, reflecting the political-economy model of rentier states across the GCC region. On the other hand, findings showed that the impact of per capita income and oil prices tend to significantly affect dependency on oil correlatively. Furthermore, increased population growth is associated with lower dependency on oil when the labor force expands and can provide more opportunities for economic diversification. Conclusion: GCC policy makers should pursue appropriate incentive frameworks through reforms to the GCC’s business and investment environments besides the need to reconsider strategies for foreign direct investments to achieve economic diversification.

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Effects of the Quality of Institutions on the Economic Diversification of the States of the Economic and Monetary Community of Central Africa (CEMAC)

Cited by 4 publications

References 23 publications

Do Economic Complexity Drivers Differ by Income Level? Insights From a Global Perspective

Do Economic Complexity Drivers Differ by Income Level? Insights From a Global Perspective

Export diversification in Africa's landlocked countries: governance vs geography

Does political will have the potential to improve GCC economic diversification?

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