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Economic Security and the Political Governance Crisis in Central African Republic

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  • Thales Pacific Yapatake Kossele
  • Li Jin Shan

Abstract

Recently the Central African Republic (CAR) has been experiencing huge economic insecurity which mostly derives from the political governance crisis that the country has been continuously undergoing since its independence in 1960. This paper examines the relationship between the political governance crisis and economic security in the country, covering the period 1996–2015, using two‐stage instrumental analysis and second order asymptotic tests. The results show that political stability and absence of violence/terrorism, voice and accountability, proxies of political governance crisis played a different role on national income per capita, agricultural raw materials exports, agriculture value added, external balance on goods and services, food exports, food imports, foreign direct investment, GDP growth, GDP per capita growth, wage and salaried workers, industry value added, total natural resources rent and trade, as proxies of economic security. The importance of sustainable political governance stability and the implementation of appropriate reforms at institutional level are preconditions to economic security.

Suggested Citation

  • Thales Pacific Yapatake Kossele & Li Jin Shan, 2018. "Economic Security and the Political Governance Crisis in Central African Republic," African Development Review, African Development Bank, vol. 30(4), pages 462-477, December.
    • Handle: RePEc:bla:afrdev:v:30:y:2018:i:4:p:462-477
    DOI: 10.1111/1467-8268.12352
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    2. Massimo Arnone & Alberto Costantiello & Angelo Leogrande & Syed Kafait Hussain Naqvi & Cosimo Magazzino, 2024. "Financial Stability and Innovation: The Role of Non-Performing Loans," FinTech, MDPI, vol. 3(4), pages 1-41, October.
    3. Gameli Adika, 2020. "Economic growth dynamics between resource‐rich and resource‐poor countries in sub‐Saharan Africa: The role of politics and institutions," African Development Review, African Development Bank, vol. 32(3), pages 303-315, September.
    4. Simplice A. Asongu & Joseph I. Uduji & Elda N. Okolo‐Obasi, 2020. "Drivers and Persistence of Death in Conflicts: Global Evidence," World Affairs, John Wiley & Sons, vol. 183(4), pages 389-429, December.
    5. Peter Asare-Nuamah & Anthony Amoah & Simplice A. Asongu, 2021. "Achieving food security in Ghana: Does governance matter?," Working Papers of the African Governance and Development Institute. 21/090, African Governance and Development Institute..
    6. Edmond Noubissi & Henri Njangang, 2020. "The impact of terrorism on agriculture in African countries," African Development Review, African Development Bank, vol. 32(4), pages 730-743, December.
    7. Yapatake Kossele Thales Pacific & Ngaba Mbai-Akem Gabriella Magalie, 2023. "One Bad Turn Deserves Another: How Energy Production, Financial Instability, and Political Governance Crisis Sustain the Decline of FDI Inflows in the Central African Republic," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 831-853, June.
    8. Thales Pacific Yapatake Kossele & Mom Aloysius Njong, 2020. "Capital flight and diamond exports in the Central African Republic: The role of political governance crisis," African Development Review, African Development Bank, vol. 32(3), pages 362-374, September.

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