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An Econometric Analysis of the Nexus between Credit to the Private Sector, Inflation and Economic Growth: Case of Cameroon 1965 – 2010

§ UNIVERSITY OF DSCHANG CAMEROON
‡ Faculty of Economics and Management, Department of E...

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An Econometric Analysis of the Nexus between Credit to the Private Sector, Inflation and Economic Growth: Case of Cameroon 1965 – 2010

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Abstract

This work is centered on bringing out the link between credit to the private sector, inflation and economic growth. When lending to the economy is insufficient, it poses a problem of slow growth and when credit to the economy is too high, it poses a problem of hyper-inflation. Using data from world development indicators, it employs a Vector auto regressive model involving a system of three equations, testing for the direction of causality amongst the variables using the VAR Granger causality block exogeneity Wald Tests. The results obtain shows that inflation has a positive and significant effect on growth, economic growth has a positive and significant effect on credit to the economy and credit to the economy has a negative and significant effect on inflation. Inflation granger causes economic growth, economic growth granger causes credit to the private sector and credit to the private sector granger causes inflation.

References

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Mba Fokwa Arsѐne, Dazoue Dongue Guy-Paulin. 2014. "An Econometric Analysis of the Nexus between Credit to the Private Sector, Inflation and Economic Growth: Case of Cameroon 1965 – 2010". Global Journal of Management and Business Research - G: Interdisciplinary GJMBR-G Volume 13 (GJMBR Volume 13 Issue 37 (G7)).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
Classification
GJMBR-G Classification JEL Code: O49
Version of record
v1.2

Issue date
October 28, 2013

Language
English
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An Econometric Analysis of the Nexus between Credit to the Private Sector, Inflation and Economic Growth: Case of Cameroon 1965 – 2010

Mba Arsѐne
Mba Arsѐne
Dazoue Guy-Paulin
Dazoue Guy-Paulin