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Fragility of State in Central African Republic: An Econometric Approach to Efficiency Understanding
Author(s) -
Yapatake Kossele Thales Pacific
Publication year - 2018
Publication title -
global business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.419
H-Index - 25
eISSN - 0973-0664
pISSN - 0972-1509
DOI - 10.1177/0972150918779291
Subject(s) - fragility , economics , language change , corporate governance , development economics , macroeconomics , economic system , monetary economics , art , chemistry , literature , finance
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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