BUI

COLLEGE C
Department O
Article reviei
development a
Course Name:

Shifera Gem
Instructor: Hei

Jan 2021 G.C Bule

Hora, Ethiopia
l.Introduction
This is my review work on article “Financial
sector development and economic growth:
evidence from Cameroon,’’ DOI:
10.1186/s40854-017-0073-x, 09 November
2017.by Janice Tieguhong Puatwoe and Serge
Mandiefe Piabuo.” Hith having the objective
these studies provide evidence in support of
the notion that financial development and
economic growth are not related and they are
two different phenomena that are independent
of one another. In this regard I aimed to look
at the novelist main study objective, “which is
to critically examine and evaluate the
application of cost control and cost reduction
in organizational performance and also to
review the budget as an effective tool of cost
control and cost reduction. And also review
the methodology the researcher employed to
conduct his study as well as the findings of his
study and finally explores my personal
comments on the article as a whole. Thus by
reading the article over and over I tried to put
the following perspective.
2.Summary
The Problem is statement is stated by the
author; as follows, close view of the major
results shows developing countries are more
likely to report a negative impact of financial
development on economic growth. This can be
due to country specific characteristics,
institutional framework and governance
related issues. In addition to the strong view
that there is a relationship between financial
development and economic growth,
irrespective of whether this relationship is
positive or negative, there have been a few
studies that suggest that financial development
has no impact on economic growth. This can
be due to country specific characteristics,
institutional framework and governance
related issues. As the main objective the
researcher sets that these studies provide
evidence in support of the notion that financial
development and economic growth are not
related and they are two different phenomena
that are independent of one another. There is a
relationship between financial development
and economic growth, irrespective of whether
this relationship is positive or
negative; there have been a few studies that
suggest that financial development has no
impact on economic growth. Specific objectives
is that of the study to identify he relationship
between financial development and economic
growth is abundant globally positive, negative
and no impact.
Data and methodology The time series variables
retained for this study covers the period 1980-
2014(34years).The variables (dependent and
independent) are extracted from the World
Development Indicators (WDI, 2016) of the
World Bank. Model The empirical link between
financial development and economic growth to
be estimated in this paper is adapted from a
simple model developed by De Gregorio and
Guidotti (1995) and Abduroluman (2003). In
this model the financial development variable is
included in an endogenous growth model.
The model shows how indicators of financial
development through economic relations turn to
have an impact on Discussion of results, policy
implication and conclusion the findings in this
paper have broadly confirmed the conventional
view which sustains that financial development
has a positive and significant impact on
economic growth. Although the view may not be
universal, it is widely believed that financial
system development boosts economic activities
in an economy which leads to economic growth.
These results confirm those of Tabi et al. (2011)
who used a time series data of 35 years to show
that financial development had a positive and
significant long-run effect on economic growth
in Cameroon. These results as well collaborates
with the findings of a study carried out by Beck
et al. (2000) on the impact of financial
development on economic growth in which it
was discovered that there exist a positive link
between the exogenous component of financial
development and economic growth. Evidence of
long-run co-integration between financial
development and economic growth in this study
collaborates with the verifications made by
Luintel and Kaln Policy implication This study
outlines the importance of suitable financial
policies in Cameroon and goes further to extend
literature on the positive impact of financial
development on economic growth. From the
empirical results which was based on
financial system development, it has been
proven consistently that financial development
is a fundamental determinant of economic
growth of many nations with Cameroon
inclusive and an increase in the activities of this
sector further mitigates growth. The principal
policy recommendation therefore is that
adequate consideration and proper recognition
such as provision of suitable financial reforms
should be given to the financial sector in
Cameroon as a determinant of economic growth.
Conclusion This paper highlights the positive
and significant impact of financial development
on economic growth which was earlier analyzed
by authors such as Bangehot (1873) and
Schumpeter (1911).The unit root, co-integration
and the granger causality tests were (1999) using
the Multivariate Vector Auto Regressive model
and found a double causality link between
financial development and economic growth in
sample of 90 countries. However, these results
contradict with the findings of Aghion et al.
(2004) who found an insignificant direct impact
of financial development on economic growth
and further
concluded that the level of credits as a
percentage of GDP influences growth only in
the intermediary stages of development.
3.Evaluation of the article
Under this issue we tried to put our personal
remarks on the article. And we hope this will be
a good convey for the person responsible of the
article as well as other readers. In this article the
author does flow the best paper layout that
stimulates the reader and prospective researcher
to do on the same issue.
To evaluate the researcher we will start from the
abstract part of the study that is should have be
wrote short and brief way but in the study the
author write these part short but difficult to
understand.
In the introduction part even if they write long
lasting introduction they do not set the clear
problem statement; that in turn will harm the
complete part of the study of for the reason that
study that not state the problem is unclear what
to solve. In addition to these the novelist could
not clearly state objective of the study. If the
objective of the study is not set or unclear so the
study is incomplete because of objectives that
lead accomplish the study.
In the literature review part of the study also
mixed with the contents of the introduction part
of the study like statement of the problem;
objective of the study and others. This means
either the researchers are careless otherwise they
have lack of knowledge around the area.
The authors are also set the methodology & data
part for the study that will lead to finalize the
study. In this section this research will make use
of a technique suggested by Pesaran et al. (2001)
known as Autoregressive Distributive Lag
Model (ARDL), which is based on the general to
specific modeling technique. The authors by
classifying the variables into to major group
dependent & independent. The authors take
GDP growth rate as Dependent variable and
Government expenditure & Private investment
as independent variables. But the authors not
clarify the weather Quantitative or qualitative or
mixed method is used.
Finally in These results as well collaborates with
the findings of a study carried out by Beck et al.
(2000) on the impact of financial development
on economic growth in which it was discovered
that there exist a positive link between the
exogenous component of financial development
and economic growth. Evidence of long-run co-
integration between financial development and
economic growth in this study collaborates with
the verifications made by Luintel and Kaln
Policy implication This study outlines the
importance of suitable financial policies in
Cameroon and goes further to extend literature
on the positive impact of financial development
on economic growth.
4.Contbution of the article
The article contrbutes that first it discuss about
that relationship of financial development and
economic grouth. When we say financial
development it means that accumulation of
financial assets at a more rapid rate than the
accumulation of nonfinancial assets financial
development occurs when financial instruments,
financial markets and financial intermediaries,
reduce without necessarily eliminating the costs
of obtaining information, the costs of executing
contracts and the costs of transaction, as a
consequence do a better job by offering financial
functions. These means as the financial sectors
develop in the same manner the activities of
course. Financial development has played a
leading role in many developing economies.
There is a widespread believe among policy
makers that financial development enhances
productivity which promotes growth. The
various findings made on financial development
and economic growth varies due to different
methods used in research.
5.Strength
To start in on with positive side of the article the
first I esteem the writer is that the clearly state
the researcher without doubt set the model &
classifies the variables & use In this section this
research will make use of a technique suggested
by Pesaran et al. (2001) known as
Autoregressive Distributive Lag Model
(ARDL), which is based on the general to
specific modeling technique. This can make the
researcher stronger best performer. Again what
we like more from the study is that the clearly
adhered their finding & result.
6.Weakness
Unlike to the above idea, consent me leave out
some fail incident on the article.
> The writer in this study not states the
hypothesis in the introduction part of the study
so this is the indication that the researcther not
gives an attention to it.
> The researcther; state only the problem of
one country or slim the statemente of the
problem to infer on the subject of alldeveloping
country.