Economic Growth in Cameroon

Background Information Notwithstanding the secular origin in real GDP experienced during the period 1987-93, the Cameroonian frugality remains one of the largest in the CFA franc zone, with a GDP of ab bulge out $9 billion in 1996. Compared with other sub-sharan African countries, Cameroon has one of the most change production and resource bases, as it produces and exports a broad range of commodities.Cameroon is a net oil exporter oil production, although declinging steadily since 1986, still amounted to 37 one thousand million metric tons in 1996 and represented 8% of GDP. Nevertheless, agriculture has remained the anchorman of the economy and employs over 70% of the labor force. The recent history of cameroons frugal and social training is characterized by two sharply move periods in frugal performance.Most of the period from independence in 1960 to 1986 was characterized by pecuniary balance, a rising enthronisation-GDP ratio, rising human capital stock, and expanding real GDP. In contrast, the period 1987-93 was marked by declining terms of trade, deteriorating external competitiveness, a declining investment GDP ratio, stagnating or declining human capital stock, rising fiscal imbalances, and shrivel output. Problem statementSince independence, backstage investment is creating engagement, improving infrastructure and improving livelihood standards of Cameroonians. Cameroon being a developing country with low income set outs, unemployment, poverty, and under ontogeny of natural resources, is a clear prove that the governing incapable of impact or giving Cameroon a favorable economical ripening. This incapability of the government to give Cameroon a favorable economic harvest, makes the government to leave out most of its companies for private investment, such as SONEL.Moreover most of Cameroonian grave 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 emergence of Cameroon. Romers (1986) model assumes that technological change is endogenous and that private investment raises the aim of technology for the whole economy. In this model increases in private investment raise growth in the steady-state.This study contributes to the empirical growth publications in three ways. First, economic growth is analyzed for an individual country-Cameroon-with selective information covering form 1960 till date. In addition , an investigation of the growth 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 growth of the Cameroonian economy investigated.Thirdly, following the endogenous growth models by Lucas (1988), becker, Murphy and tamura(1990) and romer(1990), the manipulation of human capital is investigated. The robustness of the sum of private investment on growth is examined by including vari ables related to financial and fiscal policies, external competitiveness, the terms of trade, and the influence of the oil sector. Objectives The main objectives of this look is to investigate the role 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 dupe if private investment actually enhance economic growth in Cameroon, we are going to use 2 types of hypothesis which are the profitless and the alternative hypothesis * Ho private investment is an engine to economic growth in Cameroon H1 private investment is not an engine to economic growth in Cameroon. Significance Of The Study. The research carried out 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 depart help African loss 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 depart help many Cameroonians who are naive about the growth of the Cameroonian economy, to know the main reasons for its slow rate and what they need to do to reform on the economy. * The government this project will help the government to wear out strategise in encouraging foreign and domestic investors, by reducing tax rates and interest rates, which will enhance economic growth. This project will serve as a resource base to students, who wish to have a bun in the oven out research in this field and better still ginger up them to focus on investment given the low rate of employment in Cameroon. Limitations of study This area of is in Cameroon in general and the littoral zone region (douala) in particular. It does not extend t o other areas due to the detail that there is inadequate timing and also, most private investments will not like to reveal all of their information to the researcher, thereby making it tricky for the researcher.