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Public Consumption and Income in the Long Run: A Panel Data Study for Central African Countries

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  • Impawe Augustin

Abstract

This article examines panel cointegration methods to study the long-run effect of public consumption on the real output of 10 Central African economies (ECCAS- CEMAC + 4) from 1990 to 2016. We integrate the investment in cointegration regression and take into account the transverse dependence in a panel data parameter. The results indicate on average that public consumption expenditure has a negative impact on long-term real GDP. Conversely, investment has a positive effect on income. Overall, the results show that a decrease in public consumption in the fiscal adjustment process has no effect on the growth of these economies.

Suggested Citation

  • Impawe Augustin, 2019. "Public Consumption and Income in the Long Run: A Panel Data Study for Central African Countries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(6), pages 101-101, June.
    • Handle: RePEc:ibn:ijefaa:v:11:y:2019:i:6:p:101
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    References listed on IDEAS

    as
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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