PurposeThe purpose of this paper is to examine key macroeconomic determinants on Cameroon's economic growth from 1970 to 2018.Design/methodology/approachData were obtained from the World Development Indicators and applied on time series data econometric techniques. The auto-regressive distributed lag (ARDL) bounds model analyzed the data since the variables had different order of integration.FindingsThe results showed long and short runs’ positive and significant connection between economic growth in Cameroon and government expenditure; trade openness, gross capital formation and exchange rate. Human capital development, foreign aid, money supply, inflation and foreign direct investment negatively and significantly affected economic growth in the short and long-runs. Hence, the macroeconomic indicators are not death.Research limitations/implicationsThe present research paper has tried to capture the impact of nine macroeconomic determinants on economic growth such as the government expenditure (LNGOVEXP), human capital development (LNHCD), foreign aids (AID), trade openness (LNTOP), foreign direct investment (LNFDI), gross capital formation (INVEST), broad money (LNM2), official exchange rate (LNEXHRATE) and Inflation (LNINFLA). However, these variables have the tendency to affect each other in a unidirectional or bidirectional manner. Further, the present research paper is unable to capture the impact of other macroeconomic variable due to the unavailability of data.Practical implicationsThe study recommends that Cameroon should use proper planning and strategic policy interventions to achieve higher sustainable economic growth with human capital development, foreign aid, money supply, foreign direct investment and moderate inflation.Social implicationsMacroeconomic indicators, if managed well, increase economic growth.Originality/valueThis paper to the best of the researcher's knowledge presents new background information to both policymakers and researchers on the main macroeconomic determinants using econometric analysis.
The objective of this study is to assess the impact of the regulation (of requirements in equity capital) and of the institutional development on some performances of the ''CEMAC'' banking sector. The secondary data used come from the publications of the World Bank (World Bank Development Indicators) and from the services of ''BEAC'' and ''COBAC''. The method of estimation is that of the Generalized Moment Method (GMM) in dynamic panel via the model of Arellano and Bond (1991). The study spans a period of 8 years (2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012) and takes into account the six countries of the CEMAC subregion. The results of the study are presented as follows: (1) the level of the prescribed equity capital does not affect neither the "banking development" nor the "capacity of mobilization of the domestic saving" and just as the "economies financing capacity". (2) The level of legal and institutional development influences negatively and significantly the "banking development" and the "volume of domestic saving". (3) Also, the level of legal and institutional development influences positively and significantly the "capacity of the banking sector to finance the economies". These results lead therefore to some implications of economic policy such as: the public authorities should reinforce the financing capacity of the "CEMAC" economies in setting up a real financial market. They should also develop and in a significant way political and institutional infrastructures in order to stimulate the confidence of savers and investors.
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