Author(s)

Pierre Ghislain Batila Ngouala Kombo, Guénolé Bongo Koumou

Faculty of Economic Sciences and Laboratory of Economic and Social Research and Studies (LARES), Université Marien Ngouabi, Brazzaville, Congo.

The quality of institutions is increasingly recognized as an indispensable factor in investment, business climate and resource allocation. In this regard, the purpose of this paper is to analyze the role of institutional quality in the financial development of CEMAC countries. Using panel data over the period 2002 to 2018 and the DOLS technique, it is found that, on the one hand, the quality of regulation and political stability generally reduce the level of financial development in the CEMAC, and on the other hand, the control of corruption and compliance with laws and regulations contribute positively to the CEMAC’s financial development. These results make it possible to identify the implications of economic policies aimed at improving the quality of institutions.

Institutional Quality, Financial Development, Central Africa

Batila Ngouala Kombo, P. and Bongo Koumou, G. (2021) The Role of the Quality of Institutions in the Financial Development of CEMAC Countries. Modern Economy, 12, 452-468. doi: 10.4236/me.2021.122023.