Economic Growth in Cameroon

priming Information Notwithstanding the secular step-down in real gross domestic product undergo during the period 1987-93, the Cameroonian saving t tiltk one of the largest in the CFA franc zone, with a GDP of about $9 billion in 1996. Comp ard with another(prenominal) sub-sharan African countries, Cameroon has one of the well-nigh diversified production and resource pess, as it produces and exports a broad range of commodities.Cameroon is a net inunct exporter oil production, although declinging steady since 1986, all in allay amounted to 37 million metric function tons in 1996 and represented 8% of GDP. Nevertheless, agriculture has remained the mainstay of the economy and employs oer 70% of the labor force. The recent muniment of cameroons scotch and social exploitation is characterized by two sharply move periods in frugal performance.Most of the period from license in 1960 to 1986 was characterized by fiscal balance, a rising coronation-GDP ratio, rising wor ld gravid stock, and expanding real GDP. In contrast, the period 1987-93 was mark by declining terms of trade, deteriorating external competitiveness, a declining investing funds GDP ratio, stagnating or declining human capital stock, rising fiscal imbalances, and wither output. Problem statementSince independence, common soldier investment is creating participation, ameliorate infrastructure and improving living standards of Cameroonians. Cameroon cosmos a developing country with impression income rates, unemployment, poverty, and under exploitation of natural resources, is a clear prove that the political sympathies incapable(p) of meeting or giving Cameroon a favorable frugal harvest-tide. This incapability of the regime to give Cameroon a favorable frugalal development, makes the organisation to leave out just about of its companies for private investment, such as SONEL.Moreover close to of Cameroonian important companies are run and own by private investors such as PILCAM,UNALOR,BOCOM,EURO OIL, and CONGELCAM just to name a few, that has led to the economic harvesting of Cameroon. Romers (1986) model assumes that technological change is endogenetic and that private investment raises the level of engine room for the whole economy. In this model increases in private investment raise ingathering in the steady-state.This get hold of contributes to the empirical growing literature in three ways. First, economic return is analyzed for an individual country-Cameroon-with info covering form 1960 till date. In addition , an investigation of the evolution determinants for Cameroonian economy and focus on the institutional and historical aspects of the country. Secondly, the contributions of private and government investments to the harvest-feast of the Cameroonian economy investigated.Thirdly, following the endogenous growth models by Lucas (1988), becker, Murphy and tamura(1990) and romer(1990), the grapheme of human capital is inves tigated. The robustness of the offspring of private investment on growth is examined by including variables related to monetary and fiscal policies, external competitiveness, the terms of trade, and the influence of the oil sector. Objectives The main objectives of this question is to investigate the workout of goods and services of private investment in the economic development of the Cameroonian economy.The specific objectives of the study are * Identify the problems of economic growth in Cameroon * Assess private investment as an engine to economic growth * Make necessary recommendations Hypothesis Here, we are going to see if private investment actually arouse economic growth in Cameroon, we are going to use 2 types of hypothesis which are the zip fastener and the alternative hypothesis * Ho private investment is an engine to economic growth in Cameroon H1 private investment is non an engine to economic growth in Cameroon. Significance Of The Study. The research carried o ut on the role of private investment in the economic development of Cameroon has its significance in 5 areas which are * Africa as a whole with the slow rate of economic growth is Africa, this research leave behind care African leader to encourage and enable private investment in their economy since as it is the main backbone to economic growth. The Cameroonian society this project leave alone help many Cameroonians who are innocent about the growth of the Cameroonian economy, to pick out the main reasons for its slow rate and what they unavoidableness to do to improve on the economy. * The government this project will help the government to better strategise in encouraging opposed and domestic investors, by reducing revenue enhancement rates and interest rates, which will enhance economic growth. This project will perform as a resource base to students, who wish to carry out research in this field and better still inspire them to focus on investment given the low rate of e mployment in Cameroon. Limitations of study This area of is in Cameroon in general and the littoral realm (douala) in particular. It does not extend to other areas due to the fact that there is short-staffed timing and also, most private investments will not like to reveal all of their information to the researcher, thereby making it thorny for the researcher.