Government Spending in Education and Economic Growth in Cameroon: A Vector Error Correction Model Approach

  • Tayo Lionel DOUANLA Yaoundé 2 University
  • Fouda Marcel Olivier ABOMO Yaoundé 2 University


This study aims at assessing the effect of government spending in education on economic growth in
Cameroon 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.


[1] Afzal, M., Farook, M.S., Ahmed, H.K., Begum, I., Quddus, M.A. 2010. Relationship between School
Education and Economic Growth in Pakistan: ARDL Bounds Testing Approach to Cointegration, Pakistan
Economic and Social Review, 48(1): 39-60.
[2] Alexander, K. 1990. The Value of an Education. MA: Simon & Schuster.
[3] Amin, A.A., Awung, W.J. 2005. Economic Analysis of private returns to investment in Education in
Cameroon, Africa Institute for Economic Development and Planning (IDEP), pp 1- 16.
[4] Azomahou, T.T., Diene, B., Diene, M. 2009. Technology Frontier, Labor Productivity and Economic Growth:
Evidence from OECD Countries, Working Paper Series, United Nations University.
[5] Baldacci, E., Clements, B., Gupta, S., Cui, Q. 2005. Social Spending, Human Capital, and Growth in
Developing Countries. World Development, 36(8): 1317- 1341.
[6] Blaug, M. 1970. An Introduction to the Economics of Education. London: Allen Lane the Penguin Books.
Book Company.
[7] Devaragan, S., Swaroop, V., Zou, H. 1996. The Composition of Public Expenditure and Economic Growth,
Journal of Monetary Economics, 37: 313-344.
[8] Ejiogu, et al. 2013. Causal relationship between Nigeria Government Budget allocation to educational sector
and economic growth, Discourse journal of educational research. 1: 54-64.
[9] Ismail, R. 1996. Modal Manusia dan Perolehan Buruh, Kuala Lumpur: Dewan Bahasa dan Pustaka.
[10] Kakar, Z.K, Khilji, B.A, Khan, M.J. 2011. Relationship between Education and Economic Growth in Pakistan:
A Time Series Analysis, Journal of International Academic Research, 11(1): 27-32.
[11] Otani, I., Villanueva, D. 1993. Long Term Growth in Developing Countries and Its Determinants an Empirical
Analysis, World Development 18(6): 769-783.
[12] Permani, R. 2009. The Role of Education in Economic Growth in East Asia: A Survey”, Asian-Pacific
Economic Literature, 23(1): 1-20.
[13] Pradhan, R. P. 2009. Education and Economic Growth in India: Using Error-Correction Modelling,
International Research Journal of Finance and Economics, 25: 139-147.
[14] Sheehan, J. 1971. Economics of Education, London: Penguin Books.
[15] Solow, R.M. 1957. Technical Change and the Aggregate Production Function, Review of Economics and
Statistics, 39(3): 312-320.
[16] Tamang, P. 2011. The Impact of Education Expenditure on India's Economic Growth, Journal of International
Academic Research, 11(3): 14-20.
*** UNESCO. 2011. World Data Education, 7th Edition. 1-24.
How to Cite
DOUANLA, Tayo Lionel; ABOMO, Fouda Marcel Olivier. Government Spending in Education and Economic Growth in Cameroon: A Vector Error Correction Model Approach. Journal of Research in Educational Sciences, [S.l.], v. 7, n. 8, p. 12 - 18, feb. 2015. ISSN 2068-8407. Available at: <>. Date accessed: 22 jan. 2022.