Page 203 - Contributed Paper Session (CPS) - Volume 8

CPS2252 Zakaya R.
The Impact of Institutional Quality and
Development of Human Ressources on Exports in
the West African Economic and Monetary Union
(WAEMU) countries
Zakaya Ramde
Professional Data Scientists Association of Burkina Faso

Abstract
This study examined the relationship between export, institutional quality and
human resources development in WAEMU countries. Panel data specification
were used over the period 1990-2005 and allowed the use of error correction
modelling (VECM). The results reveal a long-term relationship between export,
institutional quality and human resources development. In a short term
perspective, they also show that human resources and institutional quality
have positive significant impact for exports development in WAEMU area.
Therefore, these results show the need of policies to improve human resources
development and strengthen institutional quality to impact exports flows of
WAEMU countries, especially the rule of law of countries, governance stability
and developed existing anti-corruption strategies.

Keywords
Institutional quality; Human resources; Panel VECM; WAEMU

1. Introduction
The majority of African countries have economies that are outward-
looking. For most of them, they ae sufficient of raw materials, which they
export to earn foreign exchange for development in certain domains of their
economies. In this way, exports are an important tool of economic policy.
In West Africa, the first export products are raw materials with low human
contribution of quality (gold in Burkina Faso, cocoa in Ivory Coast, etc). In most
cases, foreign direct investment underpins production in sectors that are low
in quality of human resources. The Human Development Index, which
aggregate three (3) index as education level of the population aged 15+,
remains relatively low in these countries. This is characteristic of a less qualified
workforce for the production of goods and services so a weakness in exports
flows.
Costinot (2009) shows that countries with skilled human resources and
quality of institutions have comparative advantages that can positively impact
their export performance.
Moreover, the quality of the institutions appears as a necessary condition
to a better production and better returns of their exports. Credibility of
institutions are guaranties of foreign investment in the economy that can lead

192 | I S I W S C 2 0 1 9