Determinants and economic effects of inflation in CEMAC
DOI:
https://doi.org/10.59051/joaf.v12i1.427Keywords:
Determinants; Inflation; Economic growth, CEMAC.Abstract
Objective: The objective of this paper is to determine the sources and economic effects of inflation in the CEMAC.
Methodology: The data analyzed come from the World Bank (World Development Indicator, 2017). The study covers the periods 1977-1994, 1995-2016 and 1977-2016. Two equations (an inflation equation and a growth equation) are estimated by the Generalized Moments Method (GMM) of Arellano and Bond (1991).
Results: The results obtained show that inflation does not promote economic activity and comes mainly from trade with the outside world.
Originality/relevance: This study analyzes inflation from two aspects (the determinants and the economic effects). It highlights the phenomenon of imported inflation, the control of which would improve the economic situation of the CEMAC countries. In addition, the study identifies the clauses of the African Continental Free Trade Area, which entered into force in 2021, as a factor that could constitute, among other things, a palliative solution to reducing said inflation.
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Copyright (c) 2021 patrick geoffroy NKWENKA NYANDA
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