Artikel

Financial sector development and economic growth: evidence from Cameroon

For decades, African economies have embarked on financial sector reforms. However, the empirical implications of these reforms have been divergent. This paper investigates the impact of financial development on Economic growth using time series data in Cameroon. This investigation was carried out using three common indicators of financial development (broad money, deposit/GDP and domestic credit to private sector). Using the Auto Regressive Distributive Lag (ARDL) technique of estimation, it was discovered that there exist a short-run positive relationship between monetary mass (M2), government expenditure and economic growth, a short run negative relationship between bank deposits, private investment and economic growth equally exists. However in the long run, all indicators of financial development show a positive and significant impact on economic growth. This paper thus confirms the existence of a positive and long-term impact of all the indicators of financial development on economic growth through bound test. It is therefore proposed that the financial reforms in Cameroon should be pushed forward in order to boost the development of the financial sector thus an increase in its role on economic growth.

Language
Englisch

Bibliographic citation
Journal: Financial Innovation ; ISSN: 2199-4730 ; Volume: 3 ; Year: 2017 ; Issue: 25 ; Pages: 1-25 ; Heidelberg: Springer

Classification
Management
Subject
Financial development
Economic growth
Financial intermediation
Endogenous growth

Event
Geistige Schöpfung
(who)
Puatwoe, Janice Tieguhong
Piabuo, Serge Mandiefe
Event
Veröffentlichung
(who)
Springer
(where)
Heidelberg
(when)
2017

DOI
doi:10.1186/s40854-017-0073-x
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Puatwoe, Janice Tieguhong
  • Piabuo, Serge Mandiefe
  • Springer

Time of origin

  • 2017

Other Objects (12)