Institutions and the Economic Performance of Central African Countries

Abstract

The purpose of this paper is to examine the combined effect of political and economic institutions on the economic performance of the countries of Central Africa. To do this, we use dynamic panel data over the period 1996-2013. Using Principal Component Analysis (PCA) to understand the multidimensionality of institutions through a composite indicator, and applying the estimation technique based on the Generalized Moment Method (GAM) to capture the impact of institutions on economic performance, we arrive at the following result: analyzed individually or in combination, institutions constitute a real obstacle to economic performance in Central Africa.

A Comparative Analysis of Causality Between Institutional Structure and Economic Performance for Developed and Developing Countries

“…Authors concluded that there was positive and statistically significant effect of financial development and institutional quality on economic growth for the concerned group of countries. Kane et al (2019) studied Central African countries for the impact of political and economic institutions on their economic performance for the period of 1996-2013. Authors concluded that institutions were hindering economic performance of Central Africa both individually and as group.…”