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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.

Suggested Citation

  • 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, 2018. "Interest rate reforms and economic growth: the savings and investment channel," Working Papers 1813, Department of Economics, Nelson Mandela University, revised Mar 2018.
    2. repec:jfr:rwe111:v:7:y:2016:i:2:p:26-33 is not listed on IDEAS

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