Volume : VII, Issue : V, May - 2017

Analysis of the Effect of Credit to the Economy on Inflation and Economic Growth in Benin

Dr Dossou Blanchard

Abstract :

 This paper examines the effects of the sources of financing of the economy on macroeconomic stability in Benin. The study is particularly interested in credit allocation for the Beninese economy and their effects on inflation and economic growth. To achieve this, the study employed growth models specified from a Cobb–Douglas production function as well as Error Correction Models (ECM). The analysis revealed that monetary and credit policies of the central bank contributed significantly to reduction in inflation, particularly to its rate of increase relative to national production. However, from the analysis, it is evident that structure of competition in place does not effectively contribute to a strong and sustainable growth of the Beninese economy.  

Keywords :

Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr Dossou Blanchard, Analysis of the Effect of Credit to the Economy on Inflation and Economic Growth in Benin, INDIAN JOURNAL OF APPLIED RESEARCH : Volume‾7 | Issue‾5 | May‾2017

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