Enhancing investment decisions and job creation in Cameroon: the significance of the investment climate

This study investigates the pivotal role of the investment climate in shaping investment decisions and job creation, crucial for driving economic growth. Leveraging data from the Cameroon Enterprise Survey by the World Bank, we analyze 362 firms to assess this impact. Utilizing factor analysis, we construct an investment climate indicator, encompassing institutional and infrastructural dimensions. Employing the probit model and generalized moments method, we find the infrastructural environment has a significant and positive impact on investment decisions, while the institutional environment exerts a negative influence. Job creation is positively affected by both infrastructural improvement and investment decisions. Strengthening infrastructure quality and access is imperative to attract investment and alleviate unemployment in Cameroon, while addressing challenges within the institutional environment remains a priority for policy intervention.