article · Journal of Advance Research in Business Management and Accounting (ISSN 2456-3544)
This study investigates whether changes in financial sector development affect industrial growth volatility in Cameroon. Using 41 years of time-series data spanning from 1979 to 2020, an ARDL bounds test estimation technique was employed to analyse the relationship. The findings demonstrate that changes in financial sector development do not significantly influence volatility in the country's industrial growth. Furthermore, financial sector development acts as a moderating factor that renders changes in inflation volatility insignificant for controlling industrial growth volatility. Based on these insights, recommendations call for policies that bridge the gap separating Cameroon's financial and industrial sectors, making them interdependent. In addition, empowering the financial sector to satisfy industrial demands could allow local industry to rely primarily on domestic institutions for financing.
Understanding the links between financial institutions and industrial stability helps policymakers design effective economic frameworks. Because Cameroon's financial sector currently does not stabilise industrial growth volatility, resources and regulatory reforms can be directed towards strengthening financial capacity, helping local enterprises access dependable capital and fostering broader macroeconomic resilience.
The research constitutes macroeconomic policy analysis and early-stage empirical assessment rather than a commercial product. The findings are intended for economic policymakers, central banking authorities, and development finance institutions looking to align domestic financial services with industrial capital requirements. The abstract does not indicate a direct pathway to commercial technology transfer.
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The objective of this paper was to investigate whether changes in financial sector development affect industrial growth volatility in Cameroon. After exploring the related literature on the issue, time series data for 41 years was used spanning from 1979 to 2020 and ARDL bound test estimation technique employed. Findings showed that changes in financial sector development do not significantly affect volatility in industrial growth in the country. Also, financial sector development as a moderating factor renders changes in inflation volatility insignificant in controlling industrial growth volatility in the economy. The authors recommend that stakeholders should implement policies to bridge the gap separating the financial sector and the industrial sector of the country so that they should be interdependent. The financial sector as well should be empowered to meet the demands of the industrial sector for the industrial sector to principally rely on it for finance.
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DOI: 10.61841/47kr4e06
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