Abstract

The nature of the link between savings investment and growth in empirical and theoretical research in Cameroon is not well known in Cameroon. The objective of this study is to examine the nature of the relationship between savings, investment and economic growth in Cameroon from 1980 to 2010. In order to achieve our objective, data from World Bank were collected and tested in a Vector Auto Regressive Model. The Toda-Yamamoto (1995) Granger non causality test used in testing the hypothesis which was to investigate the nature of the link between investment, saving and growth showed the following results: In Cameroon, there is a unidirectional causal relationship from investment to savings, from growth to savings, and finally from growth to investment. Meanwhile, there is no causal link from savings to investment, savings towards growth and investment to growth in Cameroon. Thus, the recommendation among other things is that, Cameroon government should create an incentive framework conducive to the enhancement of gross national savings and investment to strengthen production and economic growth.

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