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

Ngouhouo, Ibrahim; Nkemgha, Guivis Zeufack

doi:10.5539/ijef.v10n12p87

Cited by 5 publications

(3 citation statements)

References 22 publications

(30 reference statements)

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“…The bipolar divides has been between the role and causality of inflation on macroeconomic performance (Doguwa, 2012;Friedman, 1973;Stockman, 1981). The empirical findings of several studies are also inconclusive, while some studies found positive relationship (Osuala, & Onyeike, 2013); others like Ngouhouo and Nkemgha, (2018) found a negative relationship between these two macroeconomic variables.…”

Section: Empirical Reviewmentioning

confidence: 99%

“…However, there was no short run causality between inflation and economic growth. Ngouhouo and Nkemgha (2018) examine a comparative analysis of the effect of inflation on growth between Cameroon, French speaking Central Africa Country where inflation is not a big concern and Ivory Coast. Using the Least Squares methodology, they found that inflation have no effect on economic growth in Cameroon during the study period.…”

Section: Empirical Reviewmentioning

confidence: 99%

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Prices of Oil, Trend of Inflation, and Macroeconomic Performance in Nigeria Revisted

2022

NIU JSS

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The study tested the validity of forecasting inflation in the short run through a Phillips curve inflation model or whether it follows a non-linear and asymmetric flow through its effects on changes in prices of oil, inflation and consequently on macroeconomic performance using Nigerian data from 1986 to 2020. Using the Autoregressive Distributive Lag Model (ARDL) approach, our results showed that there is cointegration among the variables and the existence of a relationship in the long run. So also, decomposition significantly affects the rate of interest and prices of oil in the long run. We therefore conclude with available data that prices of oil affect inflation and macroeconomic performance and thus follow an asymmetric nonlinear flow. It therefore remains a better alternative in inflation forecasting unlike the Phillips forecasting model.

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Section: Empirical Reviewmentioning

confidence: 99%

Section: Empirical Reviewmentioning

confidence: 99%

Prices of Oil, Trend of Inflation, and Macroeconomic Performance in Nigeria Revisted

2022

NIU JSS

View full text Add to dashboard Cite

show abstract

“…The inflation (Inf) is measure by the consumer price index. According to Ngouhouo and Nkemgha (2018) inflation is deleterious to economic growth.…”

Section: Data and Variables Definitionmentioning

confidence: 99%

Growth Effect of Fiscal Policy in Dependent Natural Resources Countries: Case of a Monetary Union

Nkemgha

Moumie

2020

Asian Journal of Economic Modelling

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This paper contributes to the understanding of the other neglected effects of fiscal policy by analyzing how it affects economic growth in developing countries over the period 1980-2014.The empirical evidence is based on a Pooled Mean Group approach. With the panel of dependent natural resources countries that all are members of a Central Africa Economic and Monetary Community (CEMAC), the results show that fiscal policy measured as budget deficit has a positive and significant effect on growth in the short-run while it has a negative and significant effect on economic growth in the long run. The results of a short-run country effect analysis show the effectiveness of fiscal policy in all the countries of the union with an important effect in Equatorial Guinea and the less effect in Cameroon. There for, it would be important for the governments of these countries to diversify their economy, increase the share of manufacturing exports in their total exports and finally rigorously manage their public spending.Contribution/ Originality: This study contributes to the existing literature by exploring if the dependency in natural resources can influence the relationship between fiscal policy and economic growth. This study is one of very few studies which have investigated on the issue in the CEMAC using panel Autoregressive Distributed Lag (ARDL) regression. INTRODUCTIONThe budget deficit was mainly a tool of fiscal policy during the post-world war years. The application of Keynesian theory has long been advocated for boosting the economy even if the state budget is in deficit. This in order to revive the economy. Taken as an economic tool, the budget deficit made it possible, at best, to stimulate the economy and at worst to limit the effects of a recession, the multiplier effect proved its worth in the economic crises especially that of 1929. But the economic crisis 1980s, after the 1973 and 1979 oil shocks halted economic growth after that of the glorious Thirty. The implementation of Keynesian policies was no longer followed by positive effects. It is in this context of over-indebtedness and economic imbalances that some developing countries have had to adopt reforms based on structural adjustment programs under the supervision of the International Monetary Fund and the World Bank. These reforms intensified in sub-Saharan Africa and particularly in the Franc Zone from 1994 with the devaluation of the CFA franc against the French franc and the process of sub-regional integration.Economic life has also been subject to multiple and restrictive regulations. These orientations constituted a heavy

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Growth Effect of Inflation in Central African Countries: Does Security Situation Matter?

2022

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

Cited by 5 publications

References 22 publications

Prices of Oil, Trend of Inflation, and Macroeconomic Performance in Nigeria Revisted

Prices of Oil, Trend of Inflation, and Macroeconomic Performance in Nigeria Revisted

Growth Effect of Fiscal Policy in Dependent Natural Resources Countries: Case of a Monetary Union

Growth Effect of Inflation in Central African Countries: Does Security Situation Matter?

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