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Government expense, Consumer Price Index and Economic Growth in Cameroon

Ngangue Ngwen, Marius Amba () and Taoufiki Mbratana

MPRA Paper from University Library of Munich, Germany

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

Keywords: Government expenditure; Consumer Price Index; Economic Growth; ARDL-bounds test; Cameroon (search for similar items in EconPapers)
JEL-codes: C22 F13 F21 (search for similar items in EconPapers)
Date: 2015, Revised 2015
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Published in The Empirical Economics Letters 5.14(2015): pp. 469-480

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