Department of Economics, University of Bamenda, NorthWestern, Cameroon
Review Article
The Relative Effectiveness of Fiscal and Monetary Policy on Economic Growth in Cameroon: An Error Correction Model
Author(s): Sonkey Louis Ntu* and Charlotte Nanyongo Wonganya
The aim of this research was to investigate the effectiveness of monetary and fiscal policy on economic growth in Cameroon. The Study
make use of Error correction model and Johanson Cointegration using the St. Louis equation to examine the short run and long run effect of
these policies on GDP in Cameroon. Data were collected from World Bank Development indicators from 1985 to 2018. Our findings reveal
that fiscal policy has a positive and significant effect on economic growth in the short run while monetary policy has a positive and
insignificant effect on economic growth in Cameroon in the short run. The result of cointegration using trace statistics shown
a single cointegrating equation, meaning that there is a long run relationship. The error correction term estimation gave a negative
and significant value of about 0.14 showing that about 14% of error deviation i.. Read More»
DOI:
10.37421/2162-6359.11.639
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