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Cameroon's fiscal policy and economic growth

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  • Amin, Aloysius Ajab

Abstract

Cameron has experienced periods of economic growth and decline. During the growth period public expenditures increased the size of the public sector. The decline period, which started in 1986, has been characterized by government expenditures that outstripped revenues. The government's recovery program has meant drastic reduction in public expenditures and desperate efforts to raise revenue. Since the programe started, Cameron's key macroeconomic in dictators of performance have continued to show adverse trends. There are few single country studies relating government budget to growth through private investment. Moreso nothing has bend one on Cameron. This study analyzes the relationship between publican and private investment, stressing the crowding in or crowding out of private investment by public expenditures. Based on secondary data from the public sector, the results of a growth model show that the relevant factors have positive effects on growth while those of the investment model show the crowding in of infrastructures and social sector. The study concludes by recommending the reallocation of more resources to productive sectors and increasing and sustaining of spending on those productive sector for those components of public expenditures that crowd in the private sector.

Suggested Citation

  • Amin, Aloysius Ajab, 1998. "Cameroon's fiscal policy and economic growth," Working Papers 9a11346a-6e23-4e75-8ac0-9, African Economic Research Consortium.
  • Handle: RePEc:aer:wpaper:9a11346a-6e23-4e75-8ac0-94b3b6c0449c
    Note: African Economic Research Consortium
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