Government spending in education and economic growth in Cameroon:a Vector error Correction Model approach

Douanla Tayo, Lionel and Abomo Fouda, Marcel Olivier (2015): 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

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