An examination of the sources of economic growth in Cameroon
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Date
2002-03-01
Authors
Aloysius Ajab Amin
Journal Title
Journal ISSN
Volume Title
Publisher
AERC
Abstract
Using the aggregate production function as the basic model, the study examines the
main components of Cameroon’s growth rates between 1961 and 1997 and the driving
force behind the sources of growth in the economy. Both parametric and non-parametric
approaches are used.
The results show that the contribution of the growth of factor inputs is greater than
the contribution of total factor productivity, with capital input playing a larger role. At
the sector level, input growth greatly influenced the primary sector output growth. The
capital input tends to be the most important factor influencing output growth in both the
secondary and tertiary sectors. In these two sectors, labour’s role is not effectively used
or has not been boosted to effectively perform its crucial role in the economy.
In developed economies studies show that total factor productivity growth plays a
greater role than factor input growth. The results here suggest that factor inputs play
more important roles than total factor productivity (TFP) growth with emphasis on
increasing return to scale and input growth both in quantity and quality. The technology
factor is not a big contributor to growth in Cameroon, which may be because of certain
constraints in the economy. The results do show high growth rate of total factor
productivity, thus suggesting the potential and growing importance of TFP in the growth
process. Policies that would improve the quality of factor input, particularly labour,
would tend to enhance the contribution of total factor productivity. Hence the policy
implications are to improve human capital development as the main mover of other
factors in the economy.
Description
HC 800.A1 .A 342 2002
Keywords
Cameroon - Economic Conditions - 1960