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Government expense, Consumer Price Index and Economic Growth in Cameroon

Author

Listed:
  • NGWEN, Ngangue
  • AMBA OYON, Claude Marius
  • MBRATANA, Taoufiki

Abstract

This paper examines the relationship among consumer price index (CPI), economic growth and government expenditure, in case of Cameroon. The study employs many econometric tools to explore such relationship. And our findings suggest that there is a long term relationship between CPI, economic growth and government expenditure. Government expenditure has positive effect on growth. The study finds that in the short run CPI and government expenditure positively affect economic growth. To supplement these findings, we assess the causal relationships between variables using the Granger causality test. The results indicate that in the long-run economic growth Granger causes government current expenditure and; CPI Granger causes government current expenditure but no feedback relationship is observed

Suggested Citation

  • NGWEN, Ngangue & AMBA OYON, Claude Marius & MBRATANA, Taoufiki, 2015. "Government expense, Consumer Price Index and Economic Growth in Cameroon," MPRA Paper 79682, University Library of Munich, Germany, revised 2015.
    • Handle: RePEc:pra:mprapa:79682
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    References listed on IDEAS

    as
    1. Girijasankar Mallik & Anis Chowdhury, 2002. "Inflation, government expenditure and real income in the long-run," Journal of Economic Studies, Emerald Group Publishing, vol. 29(3), pages 240-250, September.
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    5. Bruno, Michael & Easterly, William, 1998. "Inflation crises and long-run growth," Journal of Monetary Economics, Elsevier, vol. 41(1), pages 3-26, February.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Government expenditure; Consumer Price Index; Economic Growth; ARDL-bounds test; Cameroon;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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