Private Investment and Endogenous Growth: Evidence From Cameroon
IMF Working Papers, December 1, 1997
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- Private Investment and Endogenous Growth: Evidence From Cameroon
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Bibliographic details
- Authors: Dhaneshwar Ghura
- Published: December 1, 1997
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451980004.001
Major findings
- The analysis covers economic growth in Cameroon during 1963-96.
- The empirical results support the endogenous-growth-type model.
- The aggregate production function exhibits increasing returns to scale.
- The impact of increases in private investment on growth is large, significant, and robust.
- Increases in government investment have a positive impact on growth.
- Human capital development plays an important role in output expansion.
- Physical and human capital accumulation generate positive externalities.
- Growth is boosted by economic policies that foster external competitiveness and a prudent fiscal stance.
Policy-relevant implications
- Strengthening private investment is central to sustaining higher growth, given its large, significant, and robust impact.
- Sustained public investment can complement private investment, as government investment has a positive impact on growth.
- Policies that promote human capital development are important for output expansion and for generating positive externalities.
- Maintaining policies that enhance external competitiveness and a prudent fiscal stance supports growth.
Methodology and scope
- Empirical investigation of factors influencing economic growth in Cameroon over the period 1963-96.
- The study tests implications consistent with endogenous growth frameworks, emphasizing returns to scale, investment effects, human capital, and externalities.
Content in this bundle
- Private Investment and Endogenous Growth: Evidence From Cameroon - WP/97/165