This presentation is part of: O10-2 Economic Performance and Policy Reform in Africa

Policy Reforms and Social Cohesion in Africa

Mina Baliamoune-Lutz, Ph.D., Economics & Geography, University of North Florida, Bldg. 42, 1 UNF Drive, Jacksonville, FL 32224

I estimate Arellano-Bond GMM equations and examine the contribution of social cohesion to policy reform in Africa. I focus in particular on trade and financial sector reforms. The empirical results suggest that high openness to trade and financial sector liberalization may be harmful to economic performance if social cohesion is weak. Social cohesion has an independent positive impact, as well as an indirect positive effect through its interaction with policy reforms.