Abstract

The public authorities, in agreement with the private sector, are looking for the optimal solution that would enable the national economy to be more competitive in order to emerge by 2035. Indeed, one of the solutions lies in the country's ability to make private investment the growth factor. It is with this in mind that the purpose of this work is to analyze the effects of private investment on economic growth in Cameroon according to the nature of the transmission channel. To achieve this, we presented the concepts of the study as well as the literature on the relationship between them. Then we proceeded to empirical verification of the relationship between private investment and economic growth. A multiple linear regression model allowed us to relate these two concepts. Using the ordinary least squares (OLS) method in time series over the period 1990-2016, it appears that private investment has a positive influence on economic growth in Cameroon through the direct and indirect transmission channel.

Highlights

  • The objectives of growth are sought by all developed countries as well as those in the process of development, following the example of Cameroon

  • It is with this in mind that the purpose of this work is to analyze the effects of private investment on economic growth in Cameroon according to the nature of the transmission channel

  • The objective of this research was to analyze the effect of private investment on economic growth in Cameroon, through direct and indirect channels

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Summary

Introduction

The objectives of growth are sought by all developed countries as well as those in the process of development, following the example of Cameroon. Private investment is any form of investment that does not involve the government It includes domestic and foreign direct investment. The situation is such that this type of investment, in recent years, has had a clear evolution on national accounts data, the level of private investment in Cameroon is up 26.3% in 2019 compared to the same period in 2018. This increase, together with gross fixed capital formation contributed 1.2 percent to GDP growth.

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