A COMPARATIVE ANALYSIS OF BANK-CENTRIC AND MARKET-CENTRIC FINANCE: EVALUATING THEIR IMPACT ON ECONOMIC GROWTH IN CAMEROON
Keywords:
Cameroon, banks, markets, finance, economic growth, bank-based finance, market-based finance, Beck methodology, OLS techniques, financial market.Abstract
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 20102020, 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.
