Agriculture and Industrial Development in the Central African Republic: An Approach Using the ARDL Model
DOI:
https://doi.org/10.22458/rna.v15i2.5703Keywords:
Agriculture, industrial development, ARDL, cointegrationAbstract
Agriculture is a key component of industrial development and one of the state's fundamental mechanisms for stimulating economic growth. The aim of this article is to study the impact of agriculture on industrial development in the Central African Republic. In this article, the data used are annual time series covering the period 1986-2016. Modeling using the ARDL (Auto Regressive Distributed Lags) approach led to the selection of ARDL (1, 1, 2, 2, 2, 1, 2, 1, 2) as the optimal model. In addition, the Pesarane band test revealed the existence of cointegration between the variables in our econometric model. The estimation results show that, in the short term, the effect of agriculture on industrial development is positive and weak. On the other hand, the long-term effect of agriculture is positive and significant. This allows us to conclude that industrial development in the Central African Republic is explained by agriculture.
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