The purpose of this paper is to examine the combined effect of political and economic institutions on the economic performance of the countries of Central Africa. To do this, we use dynamic panel data over the period 1996-2013. Using Principal Component Analysis (PCA) to understand the multidimensionality of institutions through a composite indicator, and applying the estimation technique based on the Generalized Moment Method (GAM) to capture the impact of institutions on economic performance, we arrive at the following result: analyzed individually or in combination, institutions constitute a real obstacle to economic performance in Central Africa.
KeywordsPolitical and Economic InstitutionsEconomic PerformancePCAGMMCentral Africa
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