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Forgha et al    

Full Length Research Paper

The Effects of Export Diversification on Economic Growth in Cameroon

*Njimanted Goddfrey Forgha, PhD, Molem Christopher Sama, PhD, Ernest Musomo Atangana

Department of Economics and Management, University of Buea Cameroon

Corresponding Email Address: unicalub@yahoo.com

Received October 20, 2014; Accepted December 9, 2014

Abstract  

This study is designed to investigate into the nature of export diversification and the relationships between export diversification and economic growth in Cameroon. Using data from 1980-2012, the Vector Autoregressive (VAR) technique of estimation is adopted to stimulate policies necessitated by the study. In reality the study establishes that export diversification had positively and significantly affected economic growth in Cameroon within the period of study. This finding is ironical since the economy of Cameroon has timidly grown over the years. Based on the VAR results, we further recommend the expansion of the export base by acquiring new production techniques, research on new products, marketing and the provision of incentives and subsidies for private sector development. Redesigning of education curriculum to train qualified man power in the export sector of the economy. Furthermore the government should properly manage the public debt and especially the external debt and the consistent negative balance of payments position which sucks away the benefits of external trade from Cameroon.

Keywords: Export Diversification, Tax incentive, Development, External Debt.

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