Page 204 - Contributed Paper Session (CPS) - Volume 8

CPS2252 Zakaya R.
to economic prosperity North D (1990). On the other hand, advanced exports
can deteriorate institutions in countries considered as economically weak
Levchenko A (2009). Several indicators measure the quality of institutions.
However, stability in governance, clear rules of law over property rights, and
minimal corruption can increase the productivity of economies and increase
exports. If we consider that the quality of human resources as well as stable
institutional frameworks can impact the level of production of economies, and
hence indirectly boost export, then we can look for questions of link that can
exist between them.

2. Methodology
2.1 Data
Data use in our model are exports, human development index and
institutional quality. Exports represents exports of good and services in %
of GDP. Exports data from World Development Indicators. Human
ressources development comes from human development index database.
Institutional quality data comes from ICRG international country risk guide
presented by the PRS political risk service group. It is the mediane of three
(3) variables which are corruption, rule of law and governance stability.
2.2 Panel data specification
We use panel data specification for West African conomic and
Monetary Union (Waemu) gives by this specification:

, = 0 + ,
+ , + + + ,

Where shows country specific effect and, temporal specific effect and
, terms of error.
The and represents respectively the country and time.
The econometric model process follows three (3) steps. Firstly, the
homogeneity test of HSIAO is made to prove evidence of nature to
perform a panel treatment approach. Looking for the results of the test, P-
value of H10 is 4.818e-20 which is low than 0.05. This shows that alpha and
beta are not identitiques. And then, P-value of H20 is 0.11065515 which is
higher than 0.05. So we cannot reject the beta coefficients of explicatives
variables are equal for different countries. The P-value of H30 is very low
than 0.05. This shows existence of specific effects.

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