Author(s)

Yaya Keho

Ecole Nationale Supérieure de Statistique et d’Economie Appliquée (ENSEA), Abidjan, Cote d’Ivoire.

This study investigates the determinants of private consumption expenditure in Cote d’Ivoire using time series data from 1970 to 2016. The Autoregressive Distributed Lags bounds testing approach to cointegration is employed to depict the presence of a long run relationship between private consumption and its determinants and an error correction model is estimated to derive short run dynamics. The results show the presence of a long run relationship among the selected variables. In the long run, current income, wealth and government consumption expenditure play a positive role in determining private consumption, with the effect of current income being higher. Furthermore, consumption expenditure is negatively affected by inflation rate and real interest rate on deposits. In the short run, only income and wealth appear to have positive effects on private consumption while the effects of government consumption, inflation and interest rate were found to be insignificant. This study provides evidence for government to improve the level of private consumption.

Private Consumption, Gross Domestic Product, ARDL, Cote d’Ivoire

Keho, Y. (2019) An Econometric Analysis of the Determinants of Private Consumption in Cote d’Ivoire. Theoretical Economics Letters, 9, 947-958. doi: 10.4236/tel.2019.94061.