Economic growth across differently integrated areas : a Comparative study of CEMAC and CEPGL

Gasindikira, Josue (2024): Economic growth across differently integrated areas : a Comparative study of CEMAC and CEPGL.

Abstract

This study highlights, through the panel data approach, some economic growth’s determinants for Economic and Monetary Community of Central Africa (CEMAC) and economic Community of the Great Lakes Countries (CEPGL) countries from 2000 to 2018. The methodology relied on the within estimator and the Generalized Least Squares (GLS) estimator. The results indicate that Official Development Assistance (ODA) contributes significantly to economic growth within these two zones. However, the inflation rate is harmful for the CEPGL only. This situation would be caused by the fact that CEPGL is not yet a monetary zone. For CEMAC, capital has a significantly positive effect while the impact of trade openness is negative on the economic growth of these countries. Thus, relevant policies must be framed to improve economic growth levels within these zones, especially economic integration and good governance’s policies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic growth, Economic integration, Panel, Within, GLS.
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; F - International Economics > F1 - Trade > F15 - Economic Integration; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa

References

African Union. Constitutive act of the african union. 2000. David A Aschauer et al. Highway capacity and economic growth. Economic Perspectives, 14(5):4–24, 1990. Thomas Baudin and David de la Croix. La croissance ´economique. Cahier de recherche, 2015. Robert J Barro. Economic growth in a cross section of countries. The Quarterly Journal of Economics, 106(2):407–443, 1991. Beitone et al. Dictionnaire des sciences économiques. JArmand Colin, 2, 2012. A. Chassagnon. La croissance économique : la théorie et les faits. Université de Tours, 2012. Dedewanou Finagnon Antoine. Analyse comparative des déterminants de la croissance des pays de l’UEMOA et des pays à forte croissance. Revue d’Analyse des politiques économiques et financières, 1(1):41–68, 2015. Emmanuel Duguet. Économétrie des panels avec applications. Tiré de http://emmanuel.duguet.free.fr/ouvrage_panel_07_v2_3.pdf, 2009. John Luke Gallup, Jeffrey Sachs, and Andrew D Mellinger. Geography and economic growth. 1998. Luigi Guiso, Paola Sapienza, and Luigi Zingales. Does culture affect economic outcomes? Journal of Economic Perspectives, 20(2):23–48, 2006. Damodar Gujarati. Basic Econometrics. McGraw-Hill, New York, 2004. F. Guohua et al. An integrated panel data approach to modelling economic growth. arXiv, 2019. H. Hamisultane. Économétrie. Hal, 2002. Samuel P Huntington. Political Order in Changing Societies. Yale University Press, 2006. Christophe Hurlin and Valérie Mignon. Une synthèse des tests de racine unitaire sur données de panel. Economie & Prévision, 169170171(3):253–294, 2005. Ruth Judson. Do low human capital coefficients make sense. Board of Governors of the Federal Reserve Working Paper, (96-13), 1996. Stephen Knack and Philip Keefer. Does social capital have an economic payoff? A cross-country investigation. The Quarterly Journal of Economics, 112(4):1251–1288, 1997. Famaria Djibril Koné. La croissance en Afrique et les investissements directs étrangers. PhD thesis, Université de Rennes, 2014. Nathaniel H Leff. Economic development through bureaucratic corruption. American Behavioral Scientist, 8(3):8–14, 1964. Ross Levine and Sara Zervos. Looking at the facts: what we know about policy and growth from cross-country analysis. Technical report, The World Bank, 1993. G. Mankiw. Macroéconomie. Boeck, 2nd edition, 2001. P. Mauro. The effects of corruption on growth. In Corruption and the Global Economy. 1997. Mickaël Melki. Les interaction directes et indirectes entre idéologie et croissance économique. Cinq essais appliqués au cas français, 1870–2011. PhD thesis, Université Panthéon-Sorbonne-Paris I, 2012. Ronald L Moomaw, JK Mullen, and Martin Williams. Human and knowledge capital: A contribution to the empirics of state economic growth. Atlantic Economic Journal, 30(1):48–60, 2002. Ombeni N Mwasha. The benefits of regional economic integration for developing countries in Africa: A case of East African Community (EAC). Korea Review of International Studies, 1(8):69–92, 2011. K. Ndambiri et al. Determinants of growth in Sub-Saharan Africa. International Journal of Economics and Management Sciences, 2012. Nabil Aman Ndikeu Njoya. Corruption et croissance économique au Cameroun: de l’effet direct et des effets indirects à travers la répartition des dépenses publiques. PhD thesis, Université de Rennes; Université de Yaoundé II, 2017. Janvier Nkurunziza and Robert Bates. Political institutions and economic growth in Africa. 2003. Jean-Paul Piriou. Lexique de sciences économiques et sociales. 2007. PNUD. Intégration régionale et développement économique. One United Nations Plaza, 2011. Dani Rodrik. Institutions for high-quality growth: what they are and how to acquire them. Studies in Comparative International Development, 35(3):3–31, 2000. Paul M Romer. Endogenous technological change. Journal of Political Economy, 98(5, Part 2):S71–S102, 1990. Jeffrey D Sachs and Andrew M Warner. Sources of slow growth in African economies. Journal of African Economies, 6(3):335–376, 1997. Pierre Roche Seka. Corruption, croissance et capital humain: quels rapports? Africa Development, 38(1&2):133–150, 2013. Roman G Smirnov and Kunpeng Wang. The Hamiltonian approach to the problem of derivation of production functions in economic growth theory. arXiv preprint, arXiv:1906.11224, 2019. UA. Rapport sur l’état de l’intégration régionale en Afrique. 2019. J. Wabenga. The Economic Community of the Great Lakes Countries and the DR Congo economy: a computable general equilibrium analysis. Munich Personal RePEc Archive Paper, 2015. World Bank. World Development Indicators. 2020. WorldBank. Rapport annuel. 2017. WorldBank. Rapport annuel. 2018.