The Nexus between Private Domestic Investment, Economic Instability and Economic Growth in Cameroon
| Autor: | Gildas Dohba Dinga, Elvis Dze Achuo, Chuo Joshua Njuh, Mbinkar Mbiydzenge Linus |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2023 |
| Předmět: | |
| DOI: | 10.5281/zenodo.7664346 |
| Popis: | One of the principal concerns of economic policy today in developing countries is the desire to put in place appropriate policies that will render a better business environment and increase economic performance. This paper has as primordial objective, to empirically analyse the nature of the link between domestic investment, economic growth and economic instability in Cameroon from 1977-2014. To realise this objective, data was collected from the World Bank. The principal component analyses technic was used to reduce the key variables and the analyses done using the Vector Autoregressive model following the Toda Yamamoto (1995) specifications. The result from the Toda Yamamoto granger non causality test used shows that there is a unidirectional relationship from private domestic investment to economic growth in Cameroon. Equally, there exist a bidirectional relationship between private domestic investment and economic instability, while a unidirectional link exists from economic growth to economic instability. Consequently, the state of Cameroon should continue to encourage domestic investment and promote small and medium size enterprises so as to acquire higher growth rates. {"references":["Abdi, H., Lynne, J. W., and Domininique, V. (2013).Multiple Factor Analyses: Principal Component Analysis for Multitable and Multiblock Data Sets.WiresComput Stat 2013.Doi: 10.1002/wics.1246.","Acemoglua, D., Simon, J., James, R., and Yunyong, T. (2003). Institutional causes, macroeconomic symptoms: volatility, crises and growth.Journal of Monetary Economics, 50, 49-123.","] Aghion, P., Philippe, B., Romian, R., and Kenneth , R. (2009). Exchange rate volatility and productivity growth: the role of financial development. Journal of Monetary Economics, 56(4), 494-513.","Ali, A., and Hafeez, U. R. (2015).Macroeconomic instability and its impact on gross domestic product an empirical analysis of Pakistan.Pakistan Economic and Social Review, 53(2), 285-316","Azam, J. P. (1997).Public debt and the exchange rate in the CFA Franc Zone.Journal of African Economies, 6(1), 54- 84","Azam, J. P. (2001). Inflation and macroeconomic instability in Madagascar.Africa Development Review, 132, 175- 201.","] Bakari, S. (2018). The impact of domestic investment on economic Growth: New policy analyses for Algeria. Bulletin of Economic Theory and Analyses, 3(1), 35-51","Baumol, W. J. and Peston, M. H. (1955). More on the multiplier effects of a balanced budget. America Economic Review, 45(2), 140-148"]} |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|