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- PublicationEconomic Analysis of The Adoption of E-Commerce by Businesses in Cameroon(AERC, 2026) Mpabe Bodjongo; Mathieu JuliotThe objective of this article is to identify factors likely to stimulate e-commerce in Cameroon. The analysis focuses on a sample of 145,439 companies from the 2nd General Business Census (INS, 2018). Drawing on the economic literature, the results obtained using the probit model that combines endogeneity bias treatment and selection bias correction, and the Heckman selection bias correction probit model, reveal that increases in company size, the use of mobile money, education levels, and proximity significantly promote the adoption of e-commerce by businesses. At the sectoral level, these results are only verified in the "Trade and transport" and "Construction and other tertiary services" sub-sectors.
- PublicationAgricultural Production Diversity and Market Access: Implications for Dietary Diversity among Smallholder Farm Households in Cameroon(AERC, 2026) Anchang Juliana Adjem; Meliko Majory; Uwem EssiaOvernutrition, overweight, and obesity as consequences of nutrition transition are a growing concern of public policy in less developed countries, where it poses a triple burden even to rural areas battling with undernutrition and micronutrient deficiencies. The complex link between agriculture and nutritional outcomes has been well established. However, studies often overlook key socio-cultural dimensions of nutrition outcomes in the context of the nutrition transition and the increasing triple burden of malnutrition in rural agricultural communities. This study seeks to investigate the implications of agricultural production diversity on dietary diversity in rural smallholder farm households. We hypothesize that in addition to the contribution of production diversity and the mediating role of market access, socio-cultural factors have a significant influence on household dietary diversity and quality. Data was obtained from a cross-sectional survey of smallholder farm households in the Southwest Region, Cameroon, from 2018 to 2019. The effect of agricultural production diversity and better market access was estimated to be positive using both Generalised Poisson regression and Instrumental Variable two Stage Least Square or Instrumental Variable Poisson models. While better market access plays a positive and significant role in nutrition security and diet quality for smallholder farm households, we found that agricultural production diversity has a greater positive effect on diet outcomes than market access. Similarly, households with women empowerment indicators and better knowledge on nutrition were associated with better diet outcomes. We found a greater proportion of households with unfavourable attitudes relating to socio-cultural norms and perception. We posit that agricultural and food policies and investments should adopt an integrated approach that aligns with societal and cultural needs in promoting market access and encouraging more nutritious food choices to effectively and sustainably tackle challenges to poor nutrition. However, longitudinal studies are essential and will provide rigour on the role agricultural production diversity plays in the nutritional and health status of rural households in Cameroon.
- PublicationImpact of Interest Rate Controls on Risk-taking Behavior of Kenyan Commercial Banks(AERC, 2026) Wytone Yohane JomboThis study investigates the impact of interest rate capping on banks’ risk-taking behaviour in Kenya, a topic that has been underexplored in the existing literature. The study uses the non-performing loans ratio and z-score as proxies for risk appetite and employs a Difference-in-Difference (DiD) approach to analyse data from 26 commercial banks from 2013 to 2019. The study overcomes the challenge of the universal application of the cap across all Kenyan banks by capitalizing on the intensity of interest rates charged by different banks before the capping policy. The findings suggest that banks’ risk appetite significantly increased post-capping, indicating the negative impact of interest rate controls on banks. This is consistent with the general trend observed in related literature. The effects vary across bank peer categories, with medium-sized banks exhibiting the most pronounced changes. The study also reveals that the effect of interest rate capping on risk-taking behaviour varies based on the capital adequacy levels of banks. Based on these findings, the study calls for a reconsideration of the universal application of interest rate caps and suggests tailored approaches based on bank size or capital adequacy. It urges regulatory bodies to adopt a dynamic approach and conduct periodic reviews to manage the evolving risk landscape. The study emphasizes the importance of continuous dialogue between regulatory bodies and financial institutions to foster adaptive regulatory frameworks that balance stimulating economic growth and maintaining financial stability.
- PublicationFinancial Development Benefits of Banking Sector Globalization in Africa: Is There a Cross-border Banking Threshold Effect?(AERC, 2026) Christian Lambert Nguena; Sostella Arida Tchouala FeutsaBanking globalization’s effects on financial development in Africa are challenging to define, even without considering financial crises. By utilizing panel data and threshold regression techniques on a comprehensive database covering 47 Sub-Saharan African countries and 429 commercial banks from 1996 to 2020, we examine the non-linear impact between banking globalization and financial development, mainly to detect at what level a country should accept cross-border banking phenomenon. The statistical analysis reveals a non-linear impact of banking globalization on financial development, which remains consistent across different proxies and estimation methods. This fundamental finding enabled us to identify the threshold point and distinguish various regimes using panel threshold regression techniques. The findings confirm a U-shaped relationship, where the negative impact of cross-border banking activity is present but becomes positive after surpassing a threshold of -28.15. Subpar levels of banking globalization yield unfavorable outcomes in terms of consumption smoothing, volatility reduction, and overall financial sector development. To benefit from banking globalization, each country should ensure that cross-border banking activity exceeds the threshold of -28.15. Additional recommendations are discussed in the main text.
- PublicationFiscal Policy and External Imbalances in Ghana: Twin Deficits in Time of Rising Debt(AERC, 2026-12) Ekpeno L. EffiongThe recent rise in debt accumulation among SSA countries has raised concerns of a possible looming debt crisis. High debt levels often lead to higher fiscal deficits and a potential fiscal crisis, which can affect future growth prospects and external adjustment. This study seeks to investigate the role of public debt on the relationship between fiscal policy and current account for Ghana, which is confronted with a high risk of debt distress and persistent twin deficits. Allowing for nonlinearity and state-dependence in the relationship between fiscal policy and the current account, the paper finds evidence of the twin deficits phenomenon for a low-debt environment; whereas for the high-debt environment, the relationship is negative and relatively stable, though statistically insignificant, which supports the Ricardian Equivalence hypothesis. Specifically, fiscal expansion on the current account is subdued in the high-debt environment, but has a sizable and significant positive effect in the low-debt environment. Thus, fiscal consolidation along with debt restructuring may be necessary for economic recovery, ensuring both debt and current account sustainability, especially in times of high debt distress.