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Analysis of public investments and economic growth in Cameroon

Author

Listed:
  • Augustin Ntembe

    (Bowie State University)

  • Aloysius Ajab Amin

    (Institute for Development Solutions, Inc & Clayton State University, Georgia)

  • Regina Tawah

    (Bowie State University)

Abstract

This study investigates the contribution of public investment to economic growth in Cameroon from 1977 to 2015. It uses the Autoregressive Distributed Lag cointegration (ARDL) approach to estimate a modified version of the production function. The estimates indicate that real gross domestic product, labor force, public investment and private investment are cointegrated. Also based on the estimates, public and private investments have positive and significant effects on real gross domestic product in both the short-run and the long-run. The estimates further show that labor force has a significant long-run relationship with real gross domestic product but found no evidence of a significant short-run relationship. The error correction term is negative and significant suggesting that any deviations of real GDP growth from the long-term value would be corrected subsequently.

Suggested Citation

  • Augustin Ntembe & Aloysius Ajab Amin & Regina Tawah, 2018. "Analysis of public investments and economic growth in Cameroon," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 42(3), pages 591-614, July.
    • Handle: RePEc:spr:jecfin:v:42:y:2018:i:3:d:10.1007_s12197-017-9411-0
    DOI: 10.1007/s12197-017-9411-0
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    References listed on IDEAS

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    More about this item

    Keywords

    Cameroon; Public investment; Autoregressive Distributed Lag; Error correction; Infrastructure; Economic growth;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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