Financial liberalisation, financial development and economic growth in cameroon: a tri-variate vector error correction modelling approach

Q3 Decision Sciences

Journal of Management Information and Decision Science Pub Date : 2022-09-30 DOI:10.26524/jms.12.45

Neba Cletus Yah

{"title":"Financial liberalisation, financial development and economic growth in cameroon: a tri-variate vector error correction modelling approach","authors":"Neba Cletus Yah","doi":"10.26524/jms.12.45","DOIUrl":null,"url":null,"abstract":"The aim of this study is to analyse the relationship between financial liberalization, financial development and economic growth in Cameroon. Use is made of a tri- variate VAR model on Cameroon data for the period 1973- 2017. The results obtained show that financial liberalisation and financial development positively affect economic growth. Though financial development does not individually cause economic growth, when considered with financial liberalisation, they jointly cause economic growth.Financial liberalisation and economic growth are individually and jointly found to granger cause financial development. Financial development causes financial liberalisation while economic growth causes financial liberalisation only when jointly considered with financial development. The impulse response functions reveal that economic growth positively responds to both financial development and financial liberalisation though the effect of financial development soon fates out to become negative.Financial development is found to positively react to innovations in financial liberalisation and negatively to economic growth.As concerns financial liberalisation, it negatively responds to financial development and positively to economic growth. Also,variance decomposition reveals that variations in economic growth are mostly explained by its past values, followed by financial liberalisation and finally financial development. Financial development on its part is also mostly explained by its past values followed by financial liberalisation and finally economic growth. Based on all these, the policy recommendation we make is that the on-going financial liberalisation process in the country should be enhanced in view of permitting the financial sector to efficiently play its role in the growth process of the country.","PeriodicalId":37730,"journal":{"name":"Journal of Management Information and Decision Science","volume":"187 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2022-09-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Management Information and Decision Science","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.26524/jms.12.45","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Decision Sciences","Score":null,"Total":0}

引用次数: 0

Abstract

The aim of this study is to analyse the relationship between financial liberalization, financial development and economic growth in Cameroon. Use is made of a tri- variate VAR model on Cameroon data for the period 1973- 2017. The results obtained show that financial liberalisation and financial development positively affect economic growth. Though financial development does not individually cause economic growth, when considered with financial liberalisation, they jointly cause economic growth.Financial liberalisation and economic growth are individually and jointly found to granger cause financial development. Financial development causes financial liberalisation while economic growth causes financial liberalisation only when jointly considered with financial development. The impulse response functions reveal that economic growth positively responds to both financial development and financial liberalisation though the effect of financial development soon fates out to become negative.Financial development is found to positively react to innovations in financial liberalisation and negatively to economic growth.As concerns financial liberalisation, it negatively responds to financial development and positively to economic growth. Also,variance decomposition reveals that variations in economic growth are mostly explained by its past values, followed by financial liberalisation and finally financial development. Financial development on its part is also mostly explained by its past values followed by financial liberalisation and finally economic growth. Based on all these, the policy recommendation we make is that the on-going financial liberalisation process in the country should be enhanced in view of permitting the financial sector to efficiently play its role in the growth process of the country.

查看原文本刊更多论文

喀麦隆的金融自由化、金融发展和经济增长:三变量矢量误差校正建模方法

本研究的目的是分析喀麦隆金融自由化、金融发展和经济增长之间的关系。使用喀麦隆1973- 2017年数据的三变量VAR模型。结果表明，金融自由化和金融发展对经济增长具有正向影响。虽然金融发展不是单独促进经济增长，但从金融自由化的角度来看，它们是共同促进经济增长的。金融自由化和经济增长是各自又共同推动金融发展的。金融发展导致金融自由化，经济增长导致金融自由化，必须与金融发展结合起来考虑。脉冲响应函数表明，经济增长对金融发展和金融自由化都有积极的响应，但金融发展的影响很快就会变成负面的。研究发现，金融发展对金融自由化的创新有积极的反应，对经济增长有消极的反应。就金融自由化而言，它对金融发展的反应是消极的，对经济增长的反应是积极的。此外，方差分解表明，经济增长的变化主要由其过去的价值来解释，其次是金融自由化，最后是金融发展。金融发展在很大程度上也可以用其过去的价值观来解释，然后是金融自由化，最后是经济增长。基于所有这些，我们提出的政策建议是，应加强该国正在进行的金融自由化进程，以便允许金融业在该国的增长过程中有效发挥作用。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of Management Information and Decision Science Decision Sciences-Information Systems and Management

自引率

0.00%

发文量

期刊介绍： Journal of Management Information and Decision Sciences (JMIDS) is a reputed open access journal affiliated to Allied Business Academies. The journal focuses on disseminating the latest research in the field of management information system and its role in decision making, as well their relationships to cognate disciplines including Economics, Finance, Management, Management Science, Marketing, Statistics, Operations Research and Engineering. The journal adheres to stringent double blind peer review policy to maintain the publication quality.