GLOBAL ADVANCED RESEARCH JOURNAL OF EDUCATIONAL RESEARCH AND REVIEWS

March 2012 Vol. 1(2), pp 015-024

Copyright © 2012 Global Advanced Research Journals

 

Full Length Research Paper

Financial liberalization and household savings in Cameroon: A bound testing approach

Armand Gilbert NOULA

Senior Lecturer of the Department of Economics Analysis and Policy, Faculty of Economics and Management, University of Dschang- Cameroon

E-mail: armandgilbert@yahoo.fr

Accepted 20 March, 2012

Abstract

The main aim of this study is to determine the relationship that exists between financial liberalization policies and household savings in Cameroon. After building an econometric model of household savings, it is tested using the ARDL cointegration approach. The results indicate that there exist a long run positive and significant relationship between household saving and financial liberalization. In the short run, this relationship is positive though not significant. On the basis of these results, we recommend that Cameroonian authorities, in their quest for growth and prosperity for the country, should foster the ongoing liberalization process in the country.

Keywords: financial liberalization, household savings, ARDL modeling approach.

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