Effects of Theft on Investment Decisions of Agricultural Enterprises in Cameroon

ABSTRACT This paper analyses the effects of theft on the investment decisions of agricultural enterprises in Cameroon. The data are drawn from a survey conducted with 484 agricultural enterprises. Two methodological approaches are employed: First, a multivariate probit model that simultaneously addresses potential endogeneity and unobserved heterogeneity across different investment decisions; second, a recursive bivariate probit model applied to each investment decision, incorporating theft as an endogenous variable. The results reveal a positive and significant relationship between theft and the investment decisions of agricultural enterprises, highlighting the substantial influence of this factor on their economic behaviour.