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

Mba Fokwa Arsene; Dazoue Dongue Guy-Paulin

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

Mba Fokwa Arsene * §

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Dazoue Dongue Guy-Paulin

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§ UNIVERSITY OF DSCHANG CAMEROON

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

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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 Arsene, 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 a 2010". Global Journal of Computer Science and Technology - G: Interdisciplinary, Global Journal of Management and Business Research - G: Interdisciplinary GJMBR-G Volume 13 (GJMBR Volume 13 Issue G7).

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GJMBR Volume 13 Issue G7

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Journal Specifications

Crossref Journal DOI 10.17406/gjcst

Print ISSN 0975-4350

e-ISSN 0975-4172

Keywords

credit to the private sector Growth inflation monetary policy

Classification

GJMBR-G Classification JEL Code: O49

Submission ReceivedDecember 16, 2012
Peer Review Double Blind
Handling Editor
Accepted January 1, 2013
Published January 15, 2013

Version of record

v1.2

Issue date

February 26, 2014

Language

English

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Total Score: 142

Country: Unknown

Subject: Global Journal of Computer Science and Technology

Authors: Mba Fokwa ArsNne, Dazoue Dongue Guy-Paulin (PhD/Dr. count: 0)

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