Author

  • Tchouassi, Gérard

    • University of Yaoundé, Cameroon, Central Africa
    • Cameroon

Abstract

This paper documents that trade liberalization and democracy contribute positively to economic development. A panel of 11 Central Africa countries with 176 observations from 1995 to 2010 was used to econometrically verify this assertion. Estimation using the general least square (GLS) with the overall R-square ( R__2 = 0.0325) shows that there is a relationship between the economic development captured here with Human development indicators (HDI), democracy, importations, exportations, inflation and regional integration. Inflation and exports negatively affect the well-being of the population. An increase in inflation rate causes a reduction in purchasing power. An increased in exports commodities tends to decrease the quantity of goods available for the country of origin. Imports have a positive effect on HDI probably because this variable tends to increase the quantity of goods available. Imports and democracy have a positive effect on the level of development among Central African countries. The paper’s findings are important to Central Africa policy makers towards creation and increasing trade within, between and with other democratic countries.

Keywords

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How to Cite

Tchouassi, G. (2013). Are Trade Liberalization and Democracy Driving Development in Central Africa Region? Empirical Lessons. Journal of Social and Development Sciences, 4(3), 131-140. https://doi.org/10.22610/jsds.v4i3.743

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Research Paper

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Vol. 4 No. 3 (2013) Leadership, Policy & Consumer Finance View issue contents

Published

2013-03-30

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