Government spending in education and economic growth in Cameroon. A Vector error Correction Model approach

Douanla Tayo, Lionel and AbomoFouda, Marcel Olivier (2016): Government spending in education and economic growth in Cameroon. A Vector error Correction Model approach.

Abstract

This study aims at assessing the effect of government spending in education on economic growth in Cameroon over the period 1980-2012 using a vector error correction model. The estimated results show that these expenditures had a significant and positive impact on economic growth both in short and long run. The estimated error correction model shows that an increase of 1% of the growth rate of private gross fixed capital formation and government education spending led to increases of 5.03% and 10.145 % respectively in the long-run on economic growth . Education spending thus appears as one of the main driving force of the economic growth process in Cameroon.

• Item Type: MPRA Paper
• Language: English
• Keywords: Economic growth, VECM.
• Subjects: H - Public Economics > H5 - National Government Expenditures and Related Policies

References

Afzal, M., Farook, M. S., Ahmed, H. K., Begum, I. &Quddus, M. A. (2010), “Relationship between School Education and Economic Growth in Pakistan: ARDL Bounds Testing Approach to Cointegration”, Pakistan Economic and Social Review 48(1), 39-60.

Alexander, K. (1990), “The Value of an Education”. MA: Simon & Schuster.

Amin, A. A., &Awung, W. J. (2005). Economic Analysis of private returns to investment in Education in Cameroon. Africa Institute for Economic Development and Planning (IDEP), pp 1- 16.

Azomahou, T. T., Diene, B. and Diene, M. (2009), “Technology Frontier, Labor Productivity and Economic Growth: Evidence from OECD Countries”, Working Paper Series, United Nations University.

Baldacci, E., Clements, B., Gupta, S., & Cui, Q. (2005), “Social Spending, Human Capital, and Growth in Developing Countries”. World Development 36(8), 1317- 1341.

Blaug, M. (1970), “An Introduction to the Economics of Education.”London: Allen Lane the Penguin Books.Book Company.

Devaragan, S.; Swaroop, V. and Zou, H. (1996), “The Composition of Public Expenditure and Economic Growth”, Journal of Monetary Economics, 37: 313-344

Ejiogu and al (2013),“Causal relationship between Nigeria Government Budget allocation to educational sector and economic growth”, Discourse journal of educational research.vol 1.P 54-64.

Ismail, R. (1996), Modal ManusiadanPerolehanBuruh. Kuala Lumpur: Dewan Bahasa danPustaka.

Kakar, Z. K, Khilji, B. A & Khan, M. J. (2011), “Relationship between Education and Economic Growth in Pakistan: A Time Series Analysis”, Journal of International Academic Research 11(1), 27-32.

Lin, T. C. (2003), “Education, Technical Progress, and Economic Growth: The Case of Taiwan”, Economic of Education Review 22, 213-220.

Otani, I. andVillanueva,D. (1993), “Long Term Growth in Developing Countries and Its Determinants an Empirical Analysis”, World Development 18(6), 769-783.

Permani, R. (2009), “The Role of Education in Economic Growth in East Asia: A Survey”, Asian-Pacific Economic Literature 23(1), 1-20.

Pradhan, R. P. (2009), “Education and Economic Growth in India: Using Error-Correction Modelling”, International Research Journal of Finance and Economics 25, 139-147.

Sheehan, (1971).Economics of Education. London: Penguin Books.

Solow, R. M. (1957), “Technical Change and the Aggregate Production Function”, Review of Economics and Statistics 39(3), 312-320.

Tamang, P (2011), “The Impact of Education Expenditure on India's Economic Growth”, Journal of International Academic Research 11(3), 14-20.

UNESCO. (2011). “World Data Education”,7ieme edition. 1-24