The Effect of Private Sector on Cameroon Gdp

Topics: Investment, Economics, Capital accumulation Pages: 34 (11391 words) Published: January 27, 2011
The private sector is a broad concept which has long been underestimated by economic authors but also by the government. The evolution of business ideas from the mercantile era (15th century BC) has yielded a lot in today’s business world. Businesses exist both in developing and developed countries. Each year, a large number of new businesses are started of which only a few are successful and grow larger. These businesses are both made by foreigners and nationals. This is also often by those who have worked for others and now want to use the opportunity to go operational. In the case of Cameroon, businesses like manufacturing, services, agriculture and industry have dominated the scene, a majority of which are owned by private individuals: this is private investments. Investment activities account for a greater proportion of Cameroon’s gross National Product (GNP), on Cameroon’s employment rate and also on Cameroon’s value added given emphasis on this concept of private sector investment activities and shows its effects on the Cameroon economy. This makes Cameroon to be recognized internationally and as well serve as a tool of living standards overtime.

Investment which is everyone possible faculty to create an activity that will bring him better results in substance has a huge contribution to a country’s economy. The section of investment in the private part: private investment brings about important revenue to a country’s economy as it is specified. Given that takes are imposed on each goods, private sector is about to produce and willing to sell to the whole world; that private activities such as firms, companies and industries help the country in reducing his employment rate and also that private activities especially ones made by foreigners emphasizing on the Cameroon primary product (firewood, cocoa, coffee) by his exportation brings about changes(fluctuation)on the cameroon economy.This so, what part of the Cameroon economy is brought by private investment? Giving that economic growth of a country is measured by its GDP or more specifically by its GNP.

Assess the effect of private sector investment on the Cameroon economy.

* Examine the employment rate effect on the Cameroon GDP * Investigate on the effect of private sector investment on the Cameroon GDP growth. * Identify the effect of value added tax on the Cameroon GDP. * Make necessary recommendations on how to find solutions. 1-3. HYPOTHESIS

* Employment rate has no effect on the Cameroon GDP
* Private sector investment doesn’t bring about GDP growth. * Value added tax has no effect on the Cameroon GDP
* Employment rate has some effect on the Cameroon GDP
* Private sector investment brings about GDP growth.
* Value added tax has some effect on the Cameroon GDP

The study at the end of its realization should create awareness on individual (Business practitioner) to know how to succeed in business and bring more to his country economy. This study also help us to know what part of the Cameroon economy is brought by the private sector and therefore whoever is willing to effect the Cameroon economic growth should be motivated in the creation of private activities, such as to raise employment rate through reduction of the unemployed people (by employing them) and raise GDP through export of his product for an international market. 1-5 SCOPE OF THE STUDY AND LIMITATIONS

1. Scope:
Private sector investment has a large number of variables. With the assumption of the stochastic error term, we are bound to investigate on the effect of private sector investment on Cameroon’s employment rate, GDP growth and value added. This investigation is centered on 26years back as from 1980 till 2005.

2. Limitations.
The study has been limited...
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