Does the quality of institutions restrain the structural transformation in Economic Community of Central African States (ECCAS)?

Abstract

The aim of this paper is to assess the contribution of quality of institutions to the structural change in ECCAS countries. A sample used of 11 countries members of ECCAS by data panel observed in period of 1996-2021. Estimator regrouped means of group is the methodology used in this paper. The results show that the institutions quality explain negatively the structural change level of ECCAS members. In addition, disaggregated using the institutions quality, the effect still the same for the regulation quality and he state of law. Anyway, the effect is positive for the efficacy of government and the politic stability. Our results still stout in using the square less ordinary method and the square less ordinary adjusted completely. The economic policy suggestions according to the implementation of a beneficial institutional framework (stable and peaceable) for attracting outside shareholders and boosting private investment. Moreover, ECCAS members must take benefit to their important endowment in natural resources for more investing in material capital and industrialization promote.

Key words: Structural change, Quality of institutions, ECCAS, PMG, DOLS, FMOLS.

JEL Classification: F14, G28, O14, O33.

Paper type: Empirical research