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Interest rate reforms, financial deepening and economic growth in Cameroon: an empirical investigation

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  • Oludele Akinloye Akinboade
  • Emilie Chanceline Kinfack

Abstract

The impact of interest rate reforms on financial deepening and growth in Cameroon is examined. We employ five proxies of financial deepening against deposit rate, a proxy for interest rate reforms. The impact of interest rate reforms on financial deepening is sensitive to the proxy used for financial deepening. The impact is almost negative and significant for all the indicators, except for the ratio of broad money to Gross Domestic Product, where it is positive and significant in the first lag. This means that financial repression helps improve broad money and hinders the development of the other indicators of financial development in Cameroon.

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  • Oludele Akinloye Akinboade & Emilie Chanceline Kinfack, 2013. "Interest rate reforms, financial deepening and economic growth in Cameroon: an empirical investigation," Applied Economics, Taylor & Francis Journals, vol. 45(25), pages 3574-3586, September.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:25:p:3574-3586
    DOI: 10.1080/00036846.2011.566200
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    Cited by:

    1. Clement Moyo & Pierre Le Roux, 2019. "Interest Rate Reforms and Economic Growth in SADC Countries: The Savings and Investment Channel," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 66(4), pages 507-523, December.
    2. Moyo, Clement & Le Roux, Pierre, 2018. "Interest rate reforms and economic growth: the savings and investment channel," MPRA Paper 85297, University Library of Munich, Germany.
    3. Qishui Chi & Shiwen Fu, 2016. "The Impact of the Interest Rate Liberalization on Both Banks and Small Firms: Evidence from China," Research in World Economy, Research in World Economy, Sciedu Press, vol. 7(2), pages 26-33, December.
    4. Jie Li & Han Yu, 2014. "Income inequality and financial reform in Asia: the role of human capital," Applied Economics, Taylor & Francis Journals, vol. 46(24), pages 2920-2935, August.
    5. Laxman Tandan & Ananta Raj Kafle & Khageshyor Khanal, 2022. "An Econometric Analysis on Interest Rate Reforms and Financial Deepening," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 12(3), pages 3-22.

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