REGS Outils de lecture

This article proposes a study of the relation ship between trade openness (Ouv) and industrialization. It examines the impact of trade openness on industrial performance for a sample of six (6) countries in the CEMAC zone over the period 2006-2019. The estimation technique is based on the Generalized Method of Moments (GMM) with variable instrumentations based on dynamic panel data. The estimation results show that trade openness has a positive and significant effect on industrialization in CEMAC countries; also, Foreign Direct Investment positively affects industrialization in the same area. Based on these results, the leaders of CEMAC countries should intensify and strengthen their multilateral trade relations in order to catch up with emerging countries in terms of industrial development. They should also strengthen this openness in favor of industrialization in the CEMAC zone in order to ensure an adequate structural transformation of the zone. Finally, they should grant certain tax advantages to foreign investors who could recruit, for the most part, local laborers but also highly qualified engineers at decision-makin glevels.