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

corrected coefficient of determination is 0.5608, indicating that the explanatory factors selected account for 56.08 percent of the variability in the endogenous variable. Given these qualities, it is evident that the model's suitability as a foundation for economic analysis has been established, and we may now move to economic interpretations of the estimated model. b) Discussion of results i. The effect of institutions on economic performance in Cameroon From the aforementioned analysis, -0.185110 is the value of the metric reflecting the impact of institutional quality on the GDP growth rate. As can be shown, the quality of Cameroon's institutions hurt the country's growth on a scale of 18.5110 percent. Accordingly, a 1% change in institutional measures corresponds to an 18.5110 percent drop in economic growth.This is in contrast to the findings of Mehdi (2021) in Morocco, we revealed that the quality of institutions has a favorable but limited impact on economic growth. What is the best way to comprehend this phenomenon? There are several possible explanations. First and foremost, Cameroon is ranked as one of the most corrupt countries in the world, as we previously stated, with serious economic effects, as evidenced by a research conducted at this time. In his analysis, Nabil (2017) shows how corruption hurts Cameroon's economic growth by reducing private investment, education levels, and government spending. An examination of the growth of corruption's influence over the previous five years reveals that much work has to be done in Cameroon to clean up the corruption problem: Table 8: Evolution of corruption in Cameroon for the last five years Years Corruption Perception Index Value in % of total Variation 2015 25 14% 2016 27 8% 2017 17,4 -36% 2018 20,06 15% 2019 20,08 0% Source: Computed by authors, using IPD data Furthermore, embezzlement of public funds, which is a common occurrence in Cameroon, is a significant economic bottleneck because it significantly reduces the budgetary pot available for the development of public infrastructure, which, in Barro's opinion, is one of the conditions for economic development because it promotes industrialization. This result confirms Cameroon's ranking of 22nd out of 38 African countries examined by the World Bankin terms of institutional and governance quality. The metric indicating the impact of international trade integration on GDP growth rate has a value of 0,055689. This contrasts with the results observed in the Democratic Republic of Congo, where a 1% change in commerce with the outside world causes a 1.249 percent change in GDP, and in Morocco, where commercial integration had a negative impact on growth of 0.3percent. This characteristic in Cameroon has a low value, with a 5 percent influence on growth. This could be because Cameroon's efforts to produce manufactured goods have yielded ineffective results, therefore it's comprehensible why the country's imports of goods and services are so high. Cameroon has a shallow level of high-tech exports, with only low- value-added products accounting for the significantity of exports, demonstrating once again the failure of Cameroon's industrialisation policy, which began with five-year plans and continued through industrial free zones (IFZs) and master plans for industrialisation. The Foreign Direct Investment inflow (FDI) rate, on the other hand, is -0.249589, indicating that Cameroon's institutions have contributed to the slowdown of economic growth through an indirect channel: discouraging foreign investors, with a foreign capital inflow rate of 2.326 percent in 2017 falling to 2.017 percent in 2019, according to World Bank data. What is the best way to comprehend this reality? Several recent studies have identified institutions as a key determinant of growth through the promotion of FDI, which has a well-known impact on growth. In fact, according to Djaowé et Bouba (2018), political stability, the business climate, and good governance are among the factors of FDI in Central Africa, and in Cameroon in particular. Institutional quality's role as a determinant of FDI in Cameroon is thus no longer debatable, and it is now part of a theoretical framework that sees FDI as reliant on it. Furthermore, given the social environment, which is characterized by periodic security crises, how can we failto comprehend the outcome of the estimate? An examination of the evolution of FDI inflows to Cameroon over the previous five years reveals that the country still has work to do: Volume XXII Issue II Version I 38 ( ) 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