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Political Instability and Growth : the Central African Republic

Author: Benoît Mercereau; Dhaneshwar Ghura; International Monetary Fund.
Publisher: Washington, D.C. : International Monetary Fund, 2004.
Edition/Format:   eBook : Document : International government publication : EnglishView all editions and formats
Summary:
This paper provides empirical evidence that the propensity for political instability in the Central African Republic (C.A.R.) has been increased by low tax revenues and deteriorations in the terms of trade. The direct effect of political instability on economic growth is not statistically significant, once account is taken of domestic investment, and economic growth in neighboring countries. The policy implications  Read more...
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Genre/Form: Electronic books
Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Benoît Mercereau; Dhaneshwar Ghura; International Monetary Fund.
ISBN: 1451896506 9781451896503
OCLC Number: 815736170
Notes: Available in PDF, ePUB, and Mobi formats on the Internet.
Description: 1 online resource (22 pages)
Other Titles: IMF eLibrary.
Responsibility: Mercereau, Benoît.

Abstract:

This paper provides empirical evidence that the propensity for political instability in the Central African Republic (C.A.R.) has been increased by low tax revenues and deteriorations in the terms of trade. The direct effect of political instability on economic growth is not statistically significant, once account is taken of domestic investment, and economic growth in neighboring countries. The policy implications are: (i) mobilization of domestic revenues to pay public employees' salaries and provide basic social services would lower the probability of coups; (ii) economic diversification would reduce the propensity for adverse terms of trade shocks to fuel coups; and (iii) neighboring countries' efforts to resolve conflicts and achieve sustained growth would be beneficial for the C.A.R.'s economic performance.

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