Government Spending in Education and Economic Growth in Cameroon: A Vector Error Correction Model Approach
Abstract
This study aims at assessing the effect of government spending in education on economic growth inCameroon over the period 1980-2012 using a vector error correction model. The estimated results show that
these expenditures had a significant and positive impact on economic growth both in short and long run. The
estimated error correction model shows that an increase of 1% of the growth rate of private gross fixed capital
formation and government education spending led to increases of 5.03% and 10.145 % respectively in the long-run on economic growth. Education spending thus appears as one of the main driving force of the economic
growth process in Cameroon.
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