BANK-BASED VS MARKET-BASED FINANCE: ASSESSING THE RELATIVE IMPORTANCE FOR ECONOMIC GROWTH IN CAMEROON
Authors/Creators
- 1. Senior Lecturer at the Faculty of Economics and Management, University of Ngaoundere; Higher Teachers Training College, University of Bertoua
- 2. PhD Candidate in Economics, the Faculty of Economics and Management, University of Maroua, P.O.Box 46, Maroua
Description
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This paper examines the relationship between bank-based and market-based finance in Cameroon and their relative importance in promoting economic growth. Using data from 2010-2020, the study applies the Beck (2010) methodology and OLS techniques to analyze the impact of finance on economic growth. The results indicate that banks have a negative impact on growth, while markets are not significant. However, banks and markets complement each other to foster growth. The findings suggest that Cameroon could improve the functioning of its financial market to unlock the potential of finance to positively impact economic growth. This study contributes to the literature on the role of finance in developing economies and offers insights for policymakers seeking to enhance economic growth in Cameroon. |