Journal of Finance and Bank Management

Trade and Economic Growth: Do Government Efficiency and the Quality Regulation Matter?
Votsoma Philémon, Bita Charles Alain, Zamo Akono Christian

Abstract
This article assesses the effect of political institutions, as captured by government efficiency and the quality of regulation, on the relationship between economic growth and trade openness using a sample of five Central African countries over the period 1996-2016. Using the Generalized Moment Estimator (GMM), we find that trade has a positive impact on economic growth and, in the other hand, government efficiency and the quality of regulation improves this positive impact.In order to benefit from growth driven by trade openness, we recommend that the authorities strengthen the effectiveness of the government in terms of policy execution and the quality of the regulation of institutions to facilitate their countries accession to the emerging economics club.

Full Text: PDF     DOI: 10.15640/jfbm.v8n2a2