The Effects of Exports, Imports, Exchange Rate and Gross Domestic Investment on Economic Growth in OIC Member Countries: A Case Study of Cameroon

Abstract

Interest in the determinants of economic growth in both developed and developing countries has generated a huge body of empirical studies, particularly on Cameroon. This study attempts to determine whether exports, imports, exchange rate and gross domestic investment cause economic growth in Cameroon since not much study has been carried out to examine these relationships. The Johansen co-integration technique was employed to test the long-run relationship between these variables and economic growth in Cameroon. The co-integration test suggests the existence of a long-run relationship between exports, imports, exchange rate, gross domestic investment and economic growth. The results of Granger causality tests indicate unidirectional causality running from exports, imports and gross domestic investment to real GDP, while causality between imports and exports is bi-directional