Inflation and Economic Growth: A Comparative Empirical Analysis Between Cameroon and the Ivory Coast

Ibrahim Ngouhouo and Guivis Zeufack Nkemgha

International Journal of Economics and Finance, 2018, vol. 10, issue 12, 87

Abstract: Inflation is the main concern of developing Countries and particularly in Ivory Coast, a leading West Africa French speaking Country. The objective of this study is to make a comparative analysis of the effect of inflation on growth between Cameroon, a French speaking Central Africa Country where inflation is not a big concern and Ivory Coast. Using the Least Squares methodology, we find that inflation has no effect on economic growth in Cameroon during the study period. However, it has a negative and significant effect on economic growth in Ivory Coast. Also, the analysis of the causal relationship between inflation and economic growth using the Toda -Yamamoto framework and the Vector Autoregressive model show that there is a unidirectional causality from inflation to economic growth in Ivory Coast, while there is no causality between these variables in Cameroon.

Date: 2018
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