International Journal of Business and Finance Management Research
ISSN: 2053-1842
Vol. 8(1), pp. 1-9, January 2020
doi.org/10.33500/ijbfmr.2020.08.001



Financial innovation and economic growth in Cameroon

Philip Satia1* and Richmond Afotey Nii Okle2

1Jiangsu University, 301 Xuefu Road, Zhenjiang, P.R. China.
2Zhejiang Gongshang University, 18 Xuezheng Str, Xiasha University Town, Hangzhou – Zhejiang (P.R. China).

*To whom correspondence should be addressed. E-mail: satiaphilip@yahoo.com.

Received 21 October, 2019; Received in revised form 25 November, 2019; Accepted 29 November, 2019.

Abstract


Keywords:
Financial innovation, Economic growth, Autoregressive distributed lag, Mobile banking (MB).

This study assessed the impact of financial innovation on the economic growth prospects of Cameroon. The study adopted domestic credit to private sector (DCP), the ratio of broad money as a percentage of GDP (M2) and mobile banking (MB) penetration as the three proxies for financial innovation. Gross domestic product per capita growth (GDPPCG) is used as an indicator of economic growth. The autoregressive distributed lag (ARDL) model was used to test the degree of relationship that exists between financial innovation and economic growth in Cameroon. Bounds test of co-integration provided high F-values for the innovation proxies. Long run estimations showed positive correlations, however DCP and M2 had negative coefficients in the short run. Financial innovation contributes to economic growth in Cameroon in the long run.

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