Energy intensity and industrialization in Cameroon

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue XI, November 2021 | ISSN 2454–6186

Energy intensity and industrialization in Cameroon

Gael FOKAM¹, Christelle MAPA², Mathurin ISSABE^3
1,2Faculty of Economics and Management, University of Dschang, Dschang, Cameroon
³PhD in Economics and Management, University of Dschang, Dschang, Cameroon

Abstract: This paper assesses the effect of energy intensity on industrialization in Cameroon over the period 1980-2020. The energy sector plays an essential role in economic prosperity and development. Energy consumption is an integral part of the growth process of any economy, whether it is an industrialized or a developing country. We estimate a panel data model using the Econometrics-Autoregressive Distributed Lag (ARDL) method. Our results show that at all levels of estimation of both long-run and short-run co integration tests, energy intensity does not favor the industrialization process in Cameroon. This leaves an important policy implication for Cameroon’s stakeholders, namely that they can focus on research and development to encourage investment in the development of new energy sources, increase energy intensity and stimulate economic growth.

I. INTRODUCTION

Although proto-industrialization is now considered to have occurred before the industrial revolution, the roots of modern industrialization can usually be traced back to the 18th century British Industrial Revolution. In the nineteenth century, a number of European and North American nations were industrialized, followed by southern Europe and Japan in subsequent decades. Several Far Eastern countries, notably those in the aftermath of World War II, became industrialized during the twentieth century.
The term “industrialization” refers to the shift from an agrarian to an industrial civilization, which is accompanied by an increase in per capita income and productivity. Any industrial revolution will necessitate a considerable amount of energy usage. Energy is one of the most heavily planned areas of activity due to its criticality and high capital intensity. Many African countries have significant challenges in obtaining the energy required for economic growth and human well-being (Revue Synthétique Des Résultats Pays, 2017).
Over the last five years, the oil and agricultural industries (timber, bananas, cocoa, coffee, cotton, and rubber) have had a significant impact on growth, with revenues representing approximately 50% and 25% of exports, respectively. On the demand side, consumption accounted for roughly 80% of GDP, while investment contributed for only 17%. On the supply side, the primary sector, which is growing in value added, employs 60% of the working population and provides 21% of GDP. However, the low quality and lack of rural infrastructure, financial restrictions connected to

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