Global Journal of Human Social Science, E: Economics, Volume 22 Issue 2

the model's non-volatility due to shocks or abrupt changes in institutional measures. Our methodological approach differs from previous studies in that it aims to analyze the institutional system as a whole in order to determine its contribution to wealth accumulation in Cameroon. Thus, our methodology is similar to that of the DEPF (2012), which was out to assess the Moroccan institutional system by developing a proxy that represents all institutional variables and that will be used in a linear model. We formalize an empirical model inside this methodological framework, using the "systins" proxy, which is built by integrating a series of institutional variables, including: − The freedom to invest Index; − Corruption Perceptions Index − The size of the Cameroonian government; − The property rights protection Index; − The index of state regulation of markets; − The government expenditure Index; − The freedom to trade Index; − The financing freedom Index; − The law enforcement index; − The index of freedom to trade internationally... We build a factor based on these institutional indicators that best combines all of these factors and thereby measures the quality of Cameroon's institutional structure. The following is the SPSS output from the development of the proxy representing the institutions in Cameroon: Table 1: Construction of the proxy of the quality of the institutional system by the PCA method Components EXTRACTION OF THE SUM OF SQUARES OF THE SELECTED FACTORS SELECTED FACTORS TOTAL OF VARIANCE CUMULATED FACTORS OF VARIANCE 1 3,858 77,119 77,119 1 77,119 2 2,508 8,123 85,242 2 1,842 4,342 89,584 4 1,045 3,1234 92,7074 Source: Authors Computation, using data from the Institutional data base The Gross Domestic Product growth rate is used as a proxy for the degree of growth in the study sample in empirical studies examining the effect of institutions on growth. In his comparative research of Anglo-Saxon versus Francophone institutions, Mahoney (2001) employed the Gross Domestic Product growth rate as an endogenous variable and institutions as explanatory variables in his regression model to examine the effect of institutions on economic growth. These studies were thus developed around the explanation of growth rate changes by institutional variances, as well as the incorporation of some control factors such as foreign trade, topography, and distance to the equator. In regard to our research hypotheses, it seems reasonable to keep the Gross Domestic Product growth rate (TxGDP) and the inflation rate (TxINF) as endogenous variables, as well as the indicator of the quality of the institutional system (systins) constructed using Principal Component Analysis (PCA) as an explanatory variable. To better capture the interplay between institutions and economic growth, we include some additional control variables. In fact, according to New International Trade Theories, institutions stimulate investment however the rate fluctuates depending on the legal environment (Djankov et al., 2003). According to data from the CAT O 1 We employ the "systins" proxy again since the other goal of our study is to look at the combined effect of institutional variables on inflation. This differs from Huang et Wei (2006)'s approach, which used the quality of monetary policies as a proxy for the quality of institutions. We use a number of control variables in addition to institutional quality, all of which are based on Institute, the private sector makes the most of investments in Cameroon, primarily foreign investments, with public assets accounting for only 14% of overall investments. Accordingly, one of the control variables should be the rate of Foreign Direct Investment inflow (TxIDE) in Cameroon. TxICI, or the degree of integration into international trade, will also be considered. 1 The CATO Institute, located in Washington, D.C., is a free enterprise advocacy organization established in themid-1970s. © 2022 Global Journals Volume XXII Issue II Version I 33 ( ) Global Journal of Human Social Science - Year 2022 E Institutional Analysis of the Determinants of Economic Non-Take-Off and High Living Standards in Cameroon between 1990 and 2019