The determinants of the global competitiveness of the economy: a dynamic panel approach applied to the WAEMU country

Abstract This article examines the determinants of the overall competitiveness of the WAEMU economy from a dynamic panel approach over the period 2011–2017. The estimate by the method of generalized moments in system (GMM) Reveled that the delayed competitiveness of a period financial development, GDP per head, internal absorption and taxes on foreign trade affects positively and significantly the overall competitiveness of the WAEMU countries while economic openness, the rate of inflation and the quality of institutions have contributed negative and significant. It emerges from this work that an improvement in the overall competitiveness of the Union's economy imperatively requires accelerating the process of development of quality, the financial system as well as protecting local industries from external pressure to through a more adequate commercial policy taking into account the constraints linked to commercial agreements.