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

economic theory. So, monetarists believe that inflation has a purely monetary foundation. We keep the rate of change of the money supply (Txmassmo) and the interest rate on savings (Tdi) as control variables in this sense. The World Bank's inflation rate, which captures the evolution of consumer prices, will be used to estimate the inflation variable. b) Mathematical formalization of the model We put the GDP growth rate in a Cobb-Douglas form mathematical relationship with its selected explanatory variables based on Solow's growth model, which is known as a general model of growth and integrates the results of neoclassicals and Keynesians on growth. Consequently, we can determine the rigth relationship: = . 1 . 2 . 3 With the coefficients measuring the influence of the selected explanatory variables. Because we want our model to be linear, we use the base 10 logarithm to change it into alog-linear model. Then, we have: log( ) = log( . 1 . 2 . 3 ) ⟹ log( ) = + log( 1 ) + log( 2 ) + log( 3 ) ⟹ log( ) = + 1 log( ) + 2 log( ) + 3 log( ) A being any coefficient. By setting log ( A ) = β 0 and integrating the omitted variables noted the model can be rewritten as follows: log( ) = 0 + 1 log( ) + 2 log( ) + 3 log( ) + After formalizing the model in this way, all that remains to be done, is to estimate it using the chosen OLS method and data from the World Bank (for macroeconomic variables) and the Institutional Profile Database (IPD) as described in the previous section, an estimate that will befollowed by a CUSUM stability test. To investigate the impact of institutions on inflation in Cameroon, we formulate a linear model based on Hefeker's (2010) and Huang et Wei's (2010) models. We can construct our empirical model can be constructed by defining inflation as a linear function of the quality of theinstitutional system and the selected control variables: = 0 + 1 + 2 + 3 + 1 , 2 and 3 represent the coefficients of each explanatory variable that only need to becalculated. V. R esults and I nterpretations The Eviews 8.1 program and data from 1990 to 2019 were used to estimate the models that were acquired. Thus, it will be acceptable to show the various outcomes and analyze the discoveries that result from them. a) Presentation of the results i. Relationship between institutions and economic performance in Cameroon Before beginning with the regression calculation of parameters, it is critical to ensure that the prerequisites for data fiability and the presence of a relationship between the variables inthe study have been verified. The first condition's verifiability prompts us to use a unit root test, in this case the augmented Dickey Fuller test. The following is the Eviews software's output: Table 2: Augmented Dickey-Fuller unit root test INCREASED DICKEY-FULLER STATISTICS VARIABLES AT LEVEL IN FIRST DIFFERENCE DECISION Tx -3,025646 -4.933941*** I(1) SYSTINS -2,564614 -6,977453*** I(1) TxICI -2,356180 -6.216533*** I(1) TxIDE -1,519813 -8.984447*** I(1) *, **, *** indicate significance at the 10%, 5% and 1% thresholds respectively Source: Authors computation, using Eviews software and World Bank data Volume XXII Issue II Version I 34 ( ) Global Journal of Human Social Science - Year 2022 © 2022 Global Journals E Institutional Analysis of the Determinants of Economic Non-Take-Off and High Living Standards in Cameroon between 1990 and 2019