The aim of this paper is to evaluate the effect of banking concentration on the monetary policy transmission mechanism in Cameroon. To conduct our study, we focus our attention on the bank lending channel. Using bank-level data of 6 commercial banks from 2006-2016 collected from National Credit Council, we estimate our model using the Dynamic Ordinary Least Square (DOLS) method. We find that, banking channel exist in Cameroon. Moreover, it appears that banking concentration weakens bank lending channel of monetary policy transmission in Cameroon. But, its impact is not significant. It also appears that banking concentration negatively and significantly affect credit supply in Cameroon. Therefore, we recommend to the Central Bank authority to reduce the amount of regulatory capital to a reasonable level in order to facilitate the entry of new banks into the sector. This should ultimately lead to the migration of concentrated structure to competitive structure more able to convey monetary policy decisions. Contribution/ Originality: This study contributes to the existing literature on monetary policy transmission mechanism in Cameroon by taking into account the effect of banking concentration on credit channel of monetary policy. 1. INTRODUCTION The financial system of the Economic Community of Central African States (CEMAC: Cameroon, Congo, Gabon, Equatorial Guinea, Central African Republic and Chad) is dominated by the banking system. This sector alone holds nearly 85% of financial assets and liabilities therefore, the bank lending channel seems to be the main channel of BEAC (Bank of Central African States) monetary policy transmission (Bikai & Kenkouo, 2015). However, the distribution of bank credit appears very concentrated in the various Central African countries. According to the 2012 COBAC (Central African Banking Commission) report, the value of the Herfindahl-Hirschmann index on the redeemable credits granted is higher than the threshold of 0.18, thus reflecting a high concentration of banks. For example, in Gabon, 65% and 45% of loans were granted by a single bank respectively in 2009 and 2010. In Equatorial Guinea, only one bank accounted for more than 60 % of loans granted in 2009. But the following year, a total of 76% credit was granted by two largest banks in Equatorial Guinea in 2010. In Cameroon two
The objective of the article is to measure the impact in 2014 of school infrastructures on school completion in Cameroon's rural milieu. They are provided between 2002 and 2012 through a participatory development model that the National Community-Driven Development Programme (NCDDP) is implementing in local governments to fight against school drop-out, a major obstacle to education-for-all in Cameroon. Applying a triple difference to data from The fourth Cameroonian Household Survey (ECAM4), it emerges that with a classroom built or equipped, the number of years of completed schooling by children aged 2 to 6 in 2004 has increased on average by 0.004 compared to that of those aged 12 to 16 in 2004 who dropped out of school in the same year. This leads to recommendations to consolidate the participatory development model to ensure better results from the decentralization of education. Résumé L'objectif de l'article est de mesurer l'impact en 2014 des infrastructures éducatives sur l'achèvement des études en milieu rural camerounais. Elles sont fournies entre 2002 et 2012 à travers un modèle participatif de développement que le Programme National de Développement Participatif (PNDP) implémente dans les gouvernements locaux pour lutter contre la déperdition scolaire, un obstacle majeur à l'éducation pour tous au Cameroun. Appliquant une triple différence sur les données de la quatrième Enquête Camerounaise Auprès des Ménages (ECAM4), il ressort qu'avec une salle de classe construite ou équipée, le nombre d'années d'études achevées avec succès des enfants âgés de 2 à 6 ans en 2004, a augmenté en moyenne de 0,004 par rapport à celui de ceux âgés de 12 à 16 ans en 2004 ayant cessé les études la même année. Il en découle des recommandations visant à consolider ce modèle participatif de développement pour assurer de meilleurs résultats à la décentralisation de l'éducation.
Institutional reforms implemented since the beginning of the Nineties resulted in a substantial increase in Foreign Direct Investments (FDI) inflow into Sub-Saharan Africa. The present study uses data on 32 countries to evaluate the impact of FDI on economic growth through panel data regressions for the period 1988-2008. The study captures the incidence of commercial openness through a comparison between the landlocked countries and those having access to the sea. The results show that FDI have a positive and significant effect on economic growth in countries that have access to the sea whereas for the landlocked countries, the results are not significant. It is therefore recommended that African countries continue to implement policies favorable to the attraction of FDI. Landlocked countries should lay a particular emphasis on the construction of infrastructures (roads, railways, airports, and phone) that facilitate the flow of goods towards the different ports for shipment to countries where their goods are more demanded
The main objective of this paper is to verify the effect of foreign debt on economic growth in sub-Saharan African sub-regions from 1980 to 2017. The paper applies the Generalized Method of Moments (GMM) with robust standard deviations using the Lewbel's estimator (2012). Results indicate that foreign debt significantly enhances growth in four zones (SADC, EAC, CEMAC and ECOWAS) with different bearable thresholds. This seems to suggest that creditors may be aware that countries do not exceed their bearable threshold at least at regional level.
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