An Empirical Analysis on the Relationship Between Law and Human Development in Regional Development: The Case of the Central African Economic and Monetary Union (CEMAC)
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Keywords:Human development, Rule of law, CEMAC
Africa has the largest number of underdeveloped countries in the world. Millions of people in the continent end their lives without attaining a standard of living worthy of human dignity. This fact has led to an increase in studies questioning the elements on which economic development in the continent depends. One of these factors is the legal system and how applicable it is. The 6 African countries examined in this study are former French colonies and have adapted the French European legal system to their legal infrastructure for various reasons. In this framework, the relationship between the rule of law and human development in these countries is investigated. In the study, pooled ordinary least squares method is applied and the model constructed with fixed effects estimator is estimated. In line with the literature, the findings indicate that human development is positively affected when the rule of law is ensured. Moreover, a similar result is obtained as the quality of regulation increases. Based on the results, increasing adherence to the law, and improving the quality of regulatory practices are recommended as elements of good governance, but this recommendation is necessary but not sufficient. These countries also need to achieve economic diversification by eliminating natural resource dependence, avoiding distortions in market efficiency through privileges and subsidies, reducing fiscal vulnerabilities, and achieving fairer distribution.
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