ANALYSIS OF THE MULTIPLIER EFFECTS OF BASIC PUBLIC INFRASTRUCTURE ON LOCAL ENTREPRENEURSHIP IN CAMEROON

Miamo Clovis, Jean Claude Saha (), Bertin Pilag Kakeu (), Cã‰lestin Kamdjo and Elvis Achuo
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Jean Claude Saha: University of Yaoundé II, Cameroon
Bertin Pilag Kakeu: University of Bamenda, Cameroon
Cã‰lestin Kamdjo: University of Dschang, Cameroon

Journal of Developmental Entrepreneurship (JDE), 2024, vol. 29, issue 02, 1-24

Abstract: This study aims to empirically analyze the contribution of public basic infrastructure to local entrepreneurship in Cameroon. Applying iterative least squares to a multilevel random coefficients Logit model, we find that public investment in basic infrastructure generates positive multiplier effects on entrepreneurship at the local level. Specifically, investment in basic economic infrastructure leads to multiplier effects on business creation at the local level. Based on these results, local public authorities are encouraged to improve the supply of infrastructure, especially regarding the quality, accessibility and availability of basic economic infrastructure. Our findings further suggest that municipalities that offer a business environment that encourages public investment in infrastructure are more attractive to entrepreneurs and can provide existing or new firms with access to the resources and skills they need to take their business to the next level.

Keywords: Local entrepreneurship; infrastructure; public investment; multiplier effect; business creation (search for similar items in EconPapers)
JEL-codes: H54 L26 O12 O18 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1142/S1084946724500080

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