Entrepreneurship and Poverty Reduction In Cameroon: A Vector Autoregressive Approach
DOI:
https://doi.org/10.14738/abr.25.345Abstract
This paper investigates the effect of entrepreneurship on poverty alleviation in Cameroon and determines the nature of the causality that exists between them using the vector autoregressive approach. The study uses data from the Cameroon National Institute of statistics and World Bank Development Indicators for the period 1980-2013. The results show that entrepreneurship has a significant negative impact on poverty in Cameroon and that there exists a significant bi-directional positive causality between entrepreneurship and poverty reduction. From a policy perspective, the study concludes that training and retraining of entrepreneurs as well as organizing entrepreneurship skills acquisition programmes are vital to boost entrepreneurship in order to reduce poverty in the country.
JEL Classification: E23, F2, F21, F43
Keywords: Entrepreneurship, Poverty reduction, Vector Autoregressive Approach
References
Akpama, S.I., Esang, O.U. Asor, L.J and Osang, W.O. (2011), Non-formal Education
Programmes and Poverty Reduction among Young Adults in Southern District,
Cross River State, Nigeria. Journal of Education and Development Psychology
Vol.1 No1.
Aina, B.S and Salako, H.A. (2008). Determinants of foreign direct investment in
Nigeria: an empirical investigation. CBN Economic and Financial Review
vol. 39, No. 1 March.
Amadi, O.B. and Abdullah, H. (2012), Perception of Capacity Building among Youths
Involved in Vocational Skills Development. Journal of Social and
Development Sciences Vol. 3 No. 6. 214-221.
Angaye, G.S 2005, “ Poverty Amid Plenty in Nigeria” Rivers Journal of the Social Sciences,
Vol.No. 1 and 2, pp.13-46.
Bula H. O (2012) “Evolution and Theories of Entrepreneurship: A Critical Review on the
Keyan Perspective”, International Journal of Business and Commerce, Vol. 1
No. 11, pp 81-96.
Chen, S. and M. Ravallion (2008). ‘The Developing World Is Poorer Than We Thought, but
No Less Successful in the Fight Against Poverty’. Policy Research Working
Paper 4703. Washington, DC: World Bank
Coleman, Brett E. (2006) “Microfinance in Northeast Thailand: Who Benefits and
How Much?” World Development, 34(9): 1612-1638.
Douhan R. and Henrekson M (2008) “Productive and Destructive Entrepreneurship in a
Political economy Framework”, IFN Working Paper No. 761, Stockholm.
Forgah F.N and Mbella E.M. (2013)“Public Expenditure and Private Investment in Cameroon
a Vector Autoregressive Approach”, Journal of Emerging Issues in Economic
Finance and Banking (JEIEFB), Vol, 2. No. 4.
Forgha N.G (2006) “Econometric Model of Poverty in Cameroon: A Sysrem Estimation
Approach” International Review of Business Research Papers, Vol. 2
No. 2. Pp 30-46
Garuba, A. (2010) Adult education and Poverty Alleviation Programmes in Nigeria: A
case for harmonization, Yola, Nigeria.
Gielnik M. And Frese M.(2013) Entrepreneurship and Poverty Reduction: Applying I-O
Psychology to Microbusiness and Entrepreneurship in Developing Countries.
New York.
Hill, J & McGowan, P (1999) A qualitative approach to developing small firm marketing
planning competences, Qualitative Market Research: An international Journal,
Vol.2, No.3.
Hulme, David (1999) “The Impact Assessment Methodologies for Microfinance:Theory,
Experience and Better Practice,” Finance and Development Research
Programme Working Paper, No.1, IDPM, University of Manchester.
Khandker, Shahidur R. (2006) “Microfinance and Poverty – Evidence Using Panel Data
from Bangladesh,” Vol. 1, Policy Research Working Paper 2945, The
World Bank.
Kirzner, Israel M. (1992), The Meaning of the Market Process – Essays in the Development
of Modern Austrian Economics. Routledge: New York.
Kirzner, I.M. (1973), Competition and Entrepreneurship, University of Chicago Press,
Chicago.
Nweze, N.J & Ojowu, O (2002) Poverty, well being and wealth Generation in Benue
State of Nigeria, Unpublished Material.
OECD (2004): Policy statement by the DAC (OECD) High Level Meeting on endorsement
of the DAC guidelines on Poverty Reduction (Paris).
Ofori F (2003): Entrepreneurship as a Key to Poverty Eradication and how the Government of
Ghana Treats Entrepreneur, Accra, Ghana. Pp 2.
Ogundele, O.J.K., Akingbade, W.A. and Akinlabi, H.B. (2012), Entrepreneurship Training
and Education as Strategic Tools for Poverty Alleviation in Nigeria. America
International Journal of Contemporary Research Vol. 2 No.1. 148-156
Ohize, E.J. and Muhammed, J.A. (2009), A Study of Youth Empowerment Scheme Of Niger
State, Nigeria in Poverty Alleviation. AU J.T., Vol.13 No.1. 47-52
Schumpeter, Joseph. 1989. “Economic Theory and Entrepreneurial History.” Reprinted from
Change and the Entrepreneur. Cambridge: Harvard University Press, 1949. In
Essays On Entrepreneurs, Innovations, Business Cycles, and the Evolution of
Capitalism, edited by Richard Clemence. New Brunswick: Transaction
Publishers.
Sims, C.A (1980) “Macroeconomics and Reality”, Retrieved August 24, 2006 from JSTOR
General Science Collection Database, Journal of Economic Perspective, Vol.
(4), pp 101-115.
Shaeikh Ali and Hafiez Ali (2013) “Entrepreneurship Development and Poverty Reduction:
Empirical Survey from Somalia” American International Journal of Social Science
Vol, 3. No. 3.
Vandenberg P.(2006) Poverty Reduction Through Small Enterprises: Emerging Consensus,
Unresolved Issues and ILO Activities. International Labour Office, Geneva,
Switzerland, Pp 1.
World Bank (2008a). Global Monitoring Report 2008. Washington DC: The International
Bank for Reconstruction and Development / The World Bank.
World Bank. (2008b). World Development indicators: Poverty data. Washington DC: The
International Bank for Reconstruction and Development / The World Bank.
Yanya M. (2012), Causal Relationship Between Entrepreneurship, Poverty and Income
Inequality in Thailand,” International Journal of Trade Economics and Finance,
Vol. 3, No. 6.
