Government expense, Consumer Price Index and Economic Growth in Cameroon

NGWEN, Ngangue and AMBA OYON, Claude Marius and MBRATANA, Taoufiki (2015): Government expense, Consumer Price Index and Economic Growth in Cameroon. Published in: The Empirical Economics Letters , Vol. 14, No. 5 (2015): pp. 469-480.

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

• Item Type: MPRA Paper
• Language: English
• Keywords: Government expenditure, Consumer Price Index, Economic Growth, ARDL-bounds test, Cameroon
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements

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