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Fragility of State in Central African Republic: An Econometric Approach to Efficiency Understanding

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  • Yapatake Kossele Thales Pacific

Abstract

A fragile state contributes to the underdevelopment of the nation and its consequences can be very devastating on the state’s cohesion, characterized by a high level of corruption which led the country to an incessant political instability and the continuous presence of foreign troops. 1 This article used the vector autoregresssion (VAR) model covering the period of 2005–2015 to examine the impact of control of corruption on the fragility of the state in the Central African Republic (CAR). The results show that control of corruption is significant and has a negative impact on the fragility of the state in the short run. The impulse response shows a negative impact of control of corruption in the short run but a positive impact in the long run on the fragility of the state. The policy implications of this fragility are that the CAR must pursue better governance as well as in the investment choices. Unless the CAR leaders and citizens recognize their own fragility, things can only get worse.

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  • Yapatake Kossele Thales Pacific, 2020. "Fragility of State in Central African Republic: An Econometric Approach to Efficiency Understanding," Global Business Review, International Management Institute, vol. 21(3), pages 681-697, June.
    • Handle: RePEc:sae:globus:v:21:y:2020:i:3:p:681-697
    DOI: 10.1177/0972150918779291
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    1. Christian Arandel & Derick W. Brinkerhoff & Marissa M. Bell, 2015. "Reducing fragility through strengthening local governance in Guinea," Third World Quarterly, Taylor & Francis Journals, vol. 36(5), pages 985-1006, May.
    2. Bertocchi, Graziella & Guerzoni, Andrea, 2010. "Growth, History, or Institutions? What Explains State Fragility in Sub-Saharan Africa," IZA Discussion Papers 4817, Institute of Labor Economics (IZA).
    3. Pacific K. T. Yapatake, 2017. "The Slow growth of Foreign Direct Investment in Central African Republic," CEREDEC Working Papers 17/001, Centre de Recherche pour le Développement Economique (CEREDEC).
    4. Rachel M. Gisselquist, 2015. "Varieties of fragility: implications for aid," Third World Quarterly, Taylor & Francis Journals, vol. 36(7), pages 1269-1280, July.
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    7. Georgios Argitis & Maria Nikolaidi, 2014. "The financial fragility and the crisis of the Greek government sector," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(3), pages 274-292, May.
    8. Jörn Grävingholt & Sebastian Ziaja & Merle Kreibaum, 2015. "Disaggregating state fragility: a method to establish a multidimensional empirical typology," Third World Quarterly, Taylor & Francis Journals, vol. 36(7), pages 1281-1298, July.
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