THE EFFECT OF PRIVATE INVESTMENT ON THE ECONOMIC GROWTH OF CAMEROON
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The study examines the effect of private investment on the economic growth of Cameroon. The model specifies economic growth measured by gross domestic product as dependent on private investment proxy to growth rate of gross capital formation, domestic credit by banking sector and foreign direct investment. Annual time series data from 1988-2020 was sourced using secondary data and analyzed using Logistic regression estimation technique. It was evidenced that private investment has a significant positive effect on economic growth. Growth rate of gross capital formation and domestic credit by banking sector have a significant effect on the economy where as foreign direct investments have no significant effect on economic growth of the country. Therefore, the study recommends that investment policy should be more transparent, attractive and competitive. This leads to a positive impact on investment in terms of volume and diversification. It further recommends that the government should promote exportation of domestic products as a high exchange rate will make our goods more attractive in the foreign market and will increase foreign exchange earnings.
KEYWORDS: Private Investment, Growth Rate of Gross Capital Formation, Domestic Credit by Banking Sector, Foreign Direct Investment and Gross Domestic Product