Exports, imports, exchange rates, gross domestic investment and growth: Empirical evidence from Cameroon

Exports, imports, exchange rates, gross domestic investment and growth: Empirical evidence from Cameroon

The main objective of this study is to investigate whether exports, imports, exchange rates, and gross domestic investment are important in determining economic growth in Cameroon. The Johansen tests of co-integration suggest the presence of a long-run relationship among the variables and all the lo...

Full description

Bibliographic Details
Main Authors: Yusoff, Mohammed, Nulambeh, Ndzembanteh Aboubakary
Format: Article
Language:English
Published: IIARD Publishing (International Institute of Academic Research and Development) 2016
Subjects:
HF Commerce
HF3000 By region or country
Online Access:http://irep.iium.edu.my/52818/
http://irep.iium.edu.my/52818/
http://irep.iium.edu.my/52818/1/Exports%2C%20Imports%2C%20Exchange%20rates%5B2%5D%20CAMEROON.pdf
id iium-52818
recordtype eprints
spelling iium-528182016-11-25T02:02:32Z http://irep.iium.edu.my/52818/ Exports, imports, exchange rates, gross domestic investment and growth: Empirical evidence from Cameroon Yusoff, Mohammed Nulambeh, Ndzembanteh Aboubakary HF Commerce HF3000 By region or country The main objective of this study is to investigate whether exports, imports, exchange rates, and gross domestic investment are important in determining economic growth in Cameroon. The Johansen tests of co-integration suggest the presence of a long-run relationship among the variables and all the long-run coefficients have the expected signs and significant at least at 5% level. Specifically, exports, gross domestic investment, and exchange rate positively influence economic growth of Cameroon while the impact of imports on GDP growth is negative; a 1% increase in exports and gross domestic investment increases GDP by approximately 2.4% and 4.5% respectively, while 1% depreciation in Cameroon currency improves the GDP by 2.6% in the long run. Finally, a 1% increase in imports will decrease the GDP of Cameroon by 8% in the long term. The results of Granger causality tests indicate that exports, investment, and imports cause GDP growth in the short-run unidirectional, but bidirectional causality exists between exports and imports. The variance decomposition results suggest that in the 20th period horizon, the variation in GDP growth is explained by exports at 41.64%, imports at 19.64 %, gross domestic investment at 17.98 % and exchange rate at 15.02 5 suggesting that economic growth in Cameroon has been spearheaded by exports, followed by gross domestic investment, and exchange rate. Imports have negative impact on growth suggesting that, perhaps, most of the imported goods are consumption goods rather than capital goods or intermediate goods. IIARD Publishing (International Institute of Academic Research and Development) 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/52818/1/Exports%2C%20Imports%2C%20Exchange%20rates%5B2%5D%20CAMEROON.pdf Yusoff, Mohammed and Nulambeh, Ndzembanteh Aboubakary (2016) Exports, imports, exchange rates, gross domestic investment and growth: Empirical evidence from Cameroon. IIARD International Journal of Economics and Business Management, 2 (8). pp. 18-32. ISSN 2489-0065 https://www.iiardpub.org/journals/IJEBM/VOL.%202%20NO.%208%202016/Exports,%20Imports,%20Exchange%20rates.pdf
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HF Commerce
HF3000 By region or country
spellingShingle HF Commerce
HF3000 By region or country
Yusoff, Mohammed
Nulambeh, Ndzembanteh Aboubakary
Exports, imports, exchange rates, gross domestic investment and growth: Empirical evidence from Cameroon
description The main objective of this study is to investigate whether exports, imports, exchange rates, and gross domestic investment are important in determining economic growth in Cameroon. The Johansen tests of co-integration suggest the presence of a long-run relationship among the variables and all the long-run coefficients have the expected signs and significant at least at 5% level. Specifically, exports, gross domestic investment, and exchange rate positively influence economic growth of Cameroon while the impact of imports on GDP growth is negative; a 1% increase in exports and gross domestic investment increases GDP by approximately 2.4% and 4.5% respectively, while 1% depreciation in Cameroon currency improves the GDP by 2.6% in the long run. Finally, a 1% increase in imports will decrease the GDP of Cameroon by 8% in the long term. The results of Granger causality tests indicate that exports, investment, and imports cause GDP growth in the short-run unidirectional, but bidirectional causality exists between exports and imports. The variance decomposition results suggest that in the 20th period horizon, the variation in GDP growth is explained by exports at 41.64%, imports at 19.64 %, gross domestic investment at 17.98 % and exchange rate at 15.02 5 suggesting that economic growth in Cameroon has been spearheaded by exports, followed by gross domestic investment, and exchange rate. Imports have negative impact on growth suggesting that, perhaps, most of the imported goods are consumption goods rather than capital goods or intermediate goods.
format Article
author Yusoff, Mohammed
Nulambeh, Ndzembanteh Aboubakary
author_facet Yusoff, Mohammed
Nulambeh, Ndzembanteh Aboubakary
author_sort Yusoff, Mohammed
title Exports, imports, exchange rates, gross domestic investment and growth: Empirical evidence from Cameroon
title_short Exports, imports, exchange rates, gross domestic investment and growth: Empirical evidence from Cameroon
title_full Exports, imports, exchange rates, gross domestic investment and growth: Empirical evidence from Cameroon
title_fullStr Exports, imports, exchange rates, gross domestic investment and growth: Empirical evidence from Cameroon
title_full_unstemmed Exports, imports, exchange rates, gross domestic investment and growth: Empirical evidence from Cameroon
title_sort exports, imports, exchange rates, gross domestic investment and growth: empirical evidence from cameroon
publisher IIARD Publishing (International Institute of Academic Research and Development)
publishDate 2016
url http://irep.iium.edu.my/52818/
http://irep.iium.edu.my/52818/
http://irep.iium.edu.my/52818/1/Exports%2C%20Imports%2C%20Exchange%20rates%5B2%5D%20CAMEROON.pdf
first_indexed 2023-09-18T21:14:50Z
last_indexed 2023-09-18T21:14:50Z
_version_ 1777411492660903936

Similar Items