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

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  • Ibrahim Ngouhouo
  • Guivis Zeufack Nkemgha

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.

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  • Ibrahim Ngouhouo & Guivis Zeufack Nkemgha, 2018. "Inflation and Economic Growth: A Comparative Empirical Analysis Between Cameroon and the Ivory Coast," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(12), pages 1-87, December.
    • Handle: RePEc:ibn:ijefaa:v:10:y:2018:i:12:p:87
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    Cited by:

    1. Guivis Zeufack Nkemgha & Eric Mouchili Moumie, 2020. "Growth Effect of Fiscal Policy in Dependent Natural Resources Countries: Case of a Monetary Union," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(2), pages 96-105, June.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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