Open AccessThe Empirical Evaluation of the Determinants of Industrial Manufacturing in the CEMAC Zone
Author(s) -
Louis Bernard Tchekoumi,
Patrick Danel Nya
Publication year - 2019
Publication title -
research in world economy
Language(s) - English
Resource type - Journals
eISSN - 1923-399X
pISSN - 1923-3981
DOI - 10.5430/rwe.v10n1p72
Subject(s) - per capita , economics , econometrics , manufacturing , gravity model of trade , population , hausman test , value (mathematics) , economic geography , panel data , international economics , fixed effects model , business , statistics , mathematics , demography , marketing , sociology
The aim of this article is to assess the determinants of industrial manufacturing in the CEMAC zone. To achieve this, we make use of a gravity model on a static panel with random effects, according to the methodology proposed by Hausman-Taylor. The results show that the population, value added of the manufacturing sector, colonial links and geographic proximity have significant impacts with the expected signs. On the other hand, the difference in absolute value of per capita GDP, the business climate, financial inflows as well as actual distance are the group variables that arise as constraints to export manufacturing.