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Distributed Lag Models and Economic Growth: Evidence from Cameroon

Author

Listed:
  • Boniface Bounoung Fouda

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper studies the intertemporal effects of various economic variables on the cameroonian growth. Using a Geometric Lag Model, we find out that 50% of the total effect of variables used is accomplished in less than half of a year. When we employ a Polynomial Distributed Lag, we find out that even if investment has a positive impact on growth in the current year, but in the presence of government expenditures, this effect becomes negative after one year due probably to the eviction effect. In addition, we find out that the consumption causes economic growth after three years whereas economic growth causes the consumption after only one year. The main lesson from this study is that any economic policy to sustain economic growth must boost in priority investment and foreign direct investment. The government should pursue policies that stimulate production instead to encourage consumption.

Suggested Citation

  • Boniface Bounoung Fouda, 2010. "Distributed Lag Models and Economic Growth: Evidence from Cameroon," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00465709, HAL.
    • Handle: RePEc:hal:cesptp:halshs-00465709
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00465709
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