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Macroeconomic determinants of household consumption in selected West African countries

Author

Listed:
  • Iheonu O Chimere

    (Department of Economics, Faculty of the Social Sciences, University of Nigeria, Nsukka, Nigeria.)

  • Tochukwu Nwachukwu

    (Preston Consults Limited, Abuja, Nigeria)

Abstract

This study investigates the macroeconomic determinants of household consumption in selected West African countries. The study employed the panel augmented mean group procedure which accounts for heterogeneity and cross sectional dependence in the modelling exercise for the period 1989 to 2018. Empirical results reveal that gross domestic product per capita and domestic credit to the private sector significantly improves household consumption in the selected West African countries as a panel. However, country specific results show differences in terms of the magnitude of the coefficients, the significance and even the signs of the regressors. Policy recommendations based on these findings are discussed.

Suggested Citation

  • Iheonu O Chimere & Tochukwu Nwachukwu, 2020. "Macroeconomic determinants of household consumption in selected West African countries," Economics Bulletin, AccessEcon, vol. 40(2), pages 1596-1606.
    • Handle: RePEc:ebl:ecbull:eb-19-01071
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    Cited by:

    1. Chimere O. Iheonu & Ogochukwu C. Anyanwu & Obinna K. Odo & Solomon Prince Nathaniel, 2021. "Does Economic Growth, International Trade and Urbanization uphold Environmental Sustainability in sub-Saharan Africa? Insights from Quantile and Causality Procedures," Working Papers of the African Governance and Development Institute. 21/003, African Governance and Development Institute..
    2. Chimere O. Iheonu & Ogochukwu C. Anyanwu & Obinna K. Odo & Solomon Prince Nathaniel, 2021. "Does Economic Growth, International Trade and Urbanization uphold Environmental Sustainability in sub-Saharan Africa? Insights from Quantile and Causality Procedures," Working Papers 21/003, European Xtramile Centre of African Studies (EXCAS).
    3. Chimere O. Iheonu & Simplice A. Asongu & Kingsley O. Odo & Patrick K. Ojiem, 2020. "Financial Sector Development and Investment in Selected ECOWAS Countries: Empirical Evidence using Heterogeneous Panel Data Method," Research Africa Network Working Papers 20/045, Research Africa Network (RAN).
    4. Chimere O. Iheonu & Simplice A. Asongu & Ekene T. Emeka & Ebuka C. Orjiakor, 2022. "Climate Change and Agricultural Productivity in West Africa," Working Papers of the African Governance and Development Institute. 22/065, African Governance and Development Institute..
    5. Chimere O. Iheonu & Ogochukwu C. Anyanwu & Obinna K. Odo & Solomon Prince Nathaniel, 2021. "Does Economic Growth, International Trade and Urbanization uphold Environmental Sustainability in sub-Saharan Africa? Insights from Quantile and Causality Procedures," Research Africa Network Working Papers 21/003, Research Africa Network (RAN).
    6. Emmanuel Uche & Bisharat Hussain Chang & Lionel Effiom, 2023. "Household consumption and exchange rate extreme dynamics: Multiple asymmetric threshold non‐linear autoregressive distributed lag model perspective," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 3437-3450, July.
    7. Chimere O. Iheonu & Simplice A. Asongu & Kingsley O. Odo & Patrick K. Ojiem, 2020. "Financial sector development and Investment in selected countries of the Economic Community of West African States: empirical evidence using heterogeneous panel data method," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-15, December.
    8. Xi Wang & Bisharat Hussain Chang & Emmanuel Uche & Qianli Zhao, 2024. "The asymmetric effect of income and price changes on the consumption expenditures: evidence from G7 countries using nonlinear bounds testing approach," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 23(1), pages 35-53, January.

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    More about this item

    Keywords

    Household consumption; West Africa; Augmented Mean Group;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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