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Trade reform and efficiency in Cameroon's manufacturing industries

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  • Ousmanou Njikam

    (African Economic Research Consortium)

Abstract

Does trade reform generate gains in manufacturing firm-level technical efficiency? Pooling of pre and post trade reform data for Cameroon, and estimating a single stochastic production frontier for each industrial sector, yielded empirical results showing that the average technical efficiency increased in six of eight sectors following trade reform. The post trade reform firm-level technical efficiencies increased on average at an annual rate of 1.39%, while prior to trade reform they decreased on average at the annual rate of 0.76%. Before trade reform, the restricted trade regime coupled with macroeconomic and political instability negatively affected firm-level technical efficiency. Post trade reform potential determinants of firms’ technical efficiency include export share and import penetration rate.

Suggested Citation

  • Ousmanou Njikam, 2003. "Trade reform and efficiency in Cameroon's manufacturing industries," Working Papers 76db19e4072d, African Economic Research Consortium, Research Department.
    • Handle: RePEc:aer:wpaper:76db19e4072d
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