Determinants of Export Propensity and Intensity of Manufacturing Firms in Cameroon: An Empirical Assessment

Many Developing Countries in the process of economic transition have engaged themselves with outward-looking export oriented policies, aimed at making their manufacturing sector very competitive. In this regard, this study aimed at examining the factors that can influence both the level of exports and the likelihood to export of manufacturing firms. The data for the study was obtained from the World Bank Investment Climate Survey (ICS). The findings from this survey showed that the turnaround time for cargo clearance at the port is faster for exporters than for importers (15.1 to 23.9 days), while transportation and energy supply were cited by more than half of the firms as key obstacles to production. The key empirical findings on the one hand showed that human capital; years of experience, turnover, and modernization have positive effect on both the likelihood to export and on the export intensity. On the other hand, insecurity and power outage have a detrimental effect on export performance. The results also pointed to the fact that many of the firms were labour intensive firms, taking advantage of the abundant cheap labour in the country. These results put together, provide insights into some policies needed to promote the performance of export manufacturing firms in Cameroon, among which include an improvement in human capital, turnover, electricity supply, security and use of technological modernized equipment.

The Role of Financial Development on Private Entrepreneurship in Cameroon

The paper analyses the effect of financial development on private entrepreneurship in Cameroon measured by private capital formation. The data was obtained from the World Development Indicators data base and were analyzed using a two stage least square regression technique. The results showed that both elements of financial development (domestic credit and savings mobilization) positively and significantly influence private entrepreneurship in Cameroon. Also, household domestic demand for goods and services had a positive effect on private entrepreneurship. From a policy perspective, an important conclusion is that an effective way for private entrepreneurship to be promoted in Cameroon is by improving on access to finance and increasing incomes that will eventually produce mutually reinforcing effects that increase savings and demand. Keywords: financial development, private entrepreneurship, two stage least squares, Cameroon JEL. Classification: B30, B53, C11, C23, O10, O4

Innovation and Export Performance: An Empirical Insight on the Effect of Innovation on Manufacturing Firms in Cameroon

The objective of this paper was to examine the effects of innovation types on the intensity and propensity to export by manufacturing firms in Cameroon. The data were secondary based on statistics collected by the International Development Research Centre (IDRC) on the manufacturing firms in Cameroon between 2011 and 2013. The data were analysed using the tobit and logit estimation techniques. The analyses revealed that different innovation activities namely process, product, market and organisation innovations have been instituted by firms in Cameroon. The empirical results showed that innovation has a positive effect on both the probability and volume to export. Specifically, only non-technological innovations significantly account for variations in export performance, while technological embedded innovations insignificantly influence export variation. Precisely, the results indicated that market and organizational innovations significantly increase intensity and propensity to export, while product innovation has a significant and positive effect on quantity exported and not on export likelihood. Other findings showed that corruption retards export performance while a stable macro-economy improved upon export performance. The findings therefore support government and public policies that promote innovative ways of firms in carrying out their daily activities

Financial Inclusion, Community Capacity Building and Pro-Wildlife Conservation Behavior around the Northern Periphery of Dja Biosphere Reserve, Cameroon

The study examines the contribution of financial inclusion and community capacity building on pro-wildlife conservation behavior among rural households at the Northern Periphery of Dja Biosphere Reserve, the east region of Cameroon. The data were elicited through the survey questionnaire administered on a sample of 279 households involved in the program of conservation in the areas. The study used a cluster sampling approach in grouping proximity villages into four zones and a purposive sampling technique was used in selecting the households. The objective was achieved empirically using three-stage maximum likelihood estimation techniques; factor analysis, confirmatory factor analysis and structural equation modeling. The result shows that financial inclusion and community capacity building had a significant positive effect on pro-wildlife conservation behavior. The magnitude of the effect of financial inclusion on pro-wildlife conservation behavior was even larger than the magnitude of the effect of community capacity building. The findings suggest that financial inclusion and community capacity building had the tendency to reduce the decline in wildlife stocks as it promoted friendly behavior towards wildlife and its habitats. The study, therefore, recommends policies that support financial inclusion and community capacity building that are essential for sustainable conservation since it promotes pro-wildlife conservation behavior.JEL Classification: G20, O15, Q5

The Implication of Financial Globalization on the Economic Growth of Cameroon

Capital account liberalization characterized by the free flow of capital into and out of an economy, has increased rapidly in recent years. This increase can potentially influence performance in trade, investment and the economy as a whole, through technological transfer. In this respect, this study aimed at examining the effect of financial globalization on the economic growth of Cameroon. The data for the study was collected from the World  Development Indicators of the World Bank and the International Financial Statistics of the International Monetary Fund from 1970-2014. The estimation was carried out using the Ordinary Least Squares Technique. The results of the study showed that financial globalization has a positive and statistical significant effect on the economic growth of Cameroon. Other results indicated that the growth rate of Cameroon rate has been influenced positively by both human and physical capital. The study therefore recommends that government should pursue policies aim at liberalizing the capital account operations. Keywords: Financial Globalization, Growth, Cameroo

Government Compliance with Public Procurement Policy and Performance of Construction Enterprises in Cameroon: A Micro Panel Modelling Approach

This paper aimed to investigate the implication of government compliance with public procurement policy for the performance of enterprises operating in the construction sector in Cameroon. To achieve its objectives, the paper made use of a micro panel collected with the help of structured questionnaires. The Pooled OLS and the random versus fixed effects models were used for the analyses. Findings revealed that the contract winning rate of construction enterprises increases monotonically over the period under study. While the performance of construction enterprises stagnated over the period 2013-2016, it only witnessed a drop in 2017 and 2018. The pooled OLS and the Random effect regression results revealed that government compliance with payment duration of construction enterprises’ bills positively and significantly affects the performance of construction enterprises in Cameroon. Based on these findings, the study recommends that the government could consider redressing the policies on the regular and prompt payment of enterprises’ bills within the timeline specified in the contracts to enable them meet up with their financial requirements, thereby contributing to their overall performance

DETERMINANTS OF BILATERAL TRADE BETWEEN CAMEROON AND HER TRADING PARTNERS: EMPIRICAL TEST OF THE GRAVITY MODEL

Exports have continued to play an important role in the economy of many developing countries. In this way the level of economic growth, employment and the balance of payments can be promoted. In Cameroon, the government has initiated several trade policy reforms aimed at promoting the export sector. This notwithstanding the country’s share in total world exports remains very low. Given the central role of exports in the economy, it was important to identify the plausible factors affecting export flows between Cameroon and her trading partners using an augmented gravity trade model. The panel dataset used covered a period from 1995 to 2014. The results showed that Cameroon’s GDP, importer’s GDP, real exchange rate, population and official common language had a positive and statistically significant effect on Cameroon’s exports. The study further showed that the distance between Cameroon and its trading partners had a negative and statistical significant effect on export flows. These results provide some policy insights which can enhance trade and foster economic growth, notably improvement in infrastructural development which is linked to transportation cost

Domestic Credit to the Private Sector and Economic Growth in Cameroon

The indispensability of a strong private sector to economic growth and development has been proven severally in empirical research. Nevertheless, different finance theories have assigned varied degrees of importance to private sector performance measures like credit provision and capital accumulation among on economic growth and development. This paper examines the relationship between domestic credit to the private sector by commercial banks, and economic growth in Cameroon, using data extracted from the World Development Indicators over the period 1961 – 2019 inclusive. Three time series models are used in the empirical analysis. Findings from our empirical analysis indicate that the high GDP will positively influence domestic credit to private sector by commercial banks and economic growth in Cameroon. Inflation and Capital have an insignificant negative impact on domestic credit to private sector by commercial banks and economic growth in Cameroon. This work therefore recommends guided increase of credit to private sector in Cameroon by Commercial banks like an instrument for growth and development in Cameroon in particular and the CEMAC zone in general.

Capital structure and financial sustainability: stakes of microfinance institutions in Bamenda, Cameroon

Abstract This research assesses the effect of capital structure on the sustainability of Microfinance Institutions (MFIs) in Bamenda, Cameroon. We use panel data obtained from audited annual financial statements of fifteen (15) MFIs, comprising both member- and shareholder-owned MFIs in Bamenda, Cameroon from 2014 to 2020, and an ex-post facto causal research design. Debt, equity, grants, and retained earnings are used to capture capital structure, while Operational Self-Sufficiency is used as a proxy for sustainability. The Generalised Least Squares and the quantile-on-quantile techniques are used for data analysis. Our findings indicate a statistically significant negative relationship between debt, grants and financial sustainability of MFIs, while a statistically significant positive relationship is found between retained earnings and financial sustainability of MFIs. A positive, though statistically insignificant relationship is found between equity or share capital and MFI financial sustainability. The results are robust upon consideration of different quantiles. Based on the findings, MFIs in Cameroon should rely more on retained earnings and equity to be more financially sustainable. The findings additionally provide evidence relating to the shortcoming of grants in the financing of development initiatives

URBANIZATION AND ENVIRONMENTAL SUSTAINABILITY IN CAMEROON: AN AUTO-REGRESSIVE DISTRIBUTED LAG MODEL TECHNIQUE

The relationship between urbanisation and the environment has elevated much public attention recently. Therefore, this study examined the effect urbanisation has on environmental sustainability in Cameroon using time series data from 1991 to 2018. To establish this, the study adopted the STIRPAT framework, the Principal Components Analysis and Autoregressive Distributed Lag Technique for data analysis. The models were tested for stationarity by applying the Phillip-Peron test. Results indicated that urbanization and trade openness had positive and significant effects on environmental sustainability in the long-run but negative in the short-run, thus, supporting an inverted U-shaped EKC. The study therefore, recommended that Cameroon revisits its trade policies and urban planning strategies and implement policies that will discourage dirty technology and encourage technological innovations (green) so as to improve energy efficiency which will go a long way to improve environmental sustainability. JEL: R10; R51; Q01 Article visualizations