Since 2014
The Main Determinants of Private Investments in the WAEMU Zone: The Dynamic Approach
Journal of Economics and Political Economy
View Archive Info| Field | Value | |
| Title |
The Main Determinants of Private Investments in the WAEMU Zone: The Dynamic Approach
|
|
| Creator |
COMBEY, Adama Messanh; Central Bank of West African States
|
|
| Subject |
Private investment; WAEMU; Dynamic fixed-effects estimator.
C33; E21; F15. |
|
| Description |
AbstractThis article investigates the main determinants of private investment in the West African Economic and Monetary Union (WAEMU). After checking for unit root and co-integration, Error Correction Model is specified, and three estimators are performed: Dynamic Fixed-Effects, Mean Group, and Pooled Mean Group. Hausman tests show that the Dynamic Fixed-Effects Estimator is more efficient and consistent than others. Results suggest that, in the short-run, private investment in the WAEMU zone is determined by the aggregate demand conditions: gross domestic product and output gap, while, in the long-run, it is determined by gross domestic product, and political stability. The short-run elasticity of gross domestic product and output gap are statistically significant and average to 5.7 and 0.06, respectively. The long-run elasticity of gross domestic product and the semi-elasticity of political stability are statistically significant and average to 2.4 and -0.25, respectively. These finds imply that, to promote private investment in the WAEMU zone, there is a need among others for more proper design and implementation of aggregate demand management policies, and political framework stability. Key words: Private investment, WAEMU, Dynamic fixed-effects estimator.JEL: C33, E21, F15.
|
|
| Publisher |
Journal of Economics and Political Economy
Journal of Economics and Political Economy |
|
| Contributor |
—
|
|
| Date |
2016-12-18
|
|
| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
|
| Format |
application/pdf
|
|
| Identifier |
http://www.kspjournals.org/index.php/JEPE/article/view/1100
10.1453/jepe.v3i4.1100 |
|
| Source |
Journal of Economics and Political Economy; Vol 3, No 4 (2016): December; 731-743
Journal of Economics and Political Economy; Vol 3, No 4 (2016): December; 731-743 2148-8347 |
|
| Language |
eng
|
|
| Relation |
http://www.kspjournals.org/index.php/JEPE/article/view/1100/1106
http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1100/486 http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1100/487 http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1100/488 http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1100/489 http://www.kspjournals.org/index.php/JEPE/article/downloadSuppFile/1100/490 |
|
| Rights |
Copyright (c) 2017 Journal of Economics and Political Economy
http://creativecommons.org/licenses/by-nc/4.0 |
|