Crude oil production and economic growth: Evidence from Cameroon

This paper analyzes the crude oil sector and examines the causal relationship between crude oil production and economic growth in Cameroon on the basis of annual data for the period 1977-2010. The tests for unit roots, the vector autoregressive (VAR) model, and the Wald test are used as econometrics methodologies. The results show no causal relationship between the variables. With regard to these results, the energy policy of Cameroon will promote the popularization of new licenses to farms to discover new crude oil deposits. In addition, if crude oil revenue management becomes transparent, then these future new deposits or such future crude oil production will have a positive impact on economic growth.