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Structural Policies for International Competitiveness in Manufacturing: The Case of Cameroon

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  • Ludvig Söderling

Abstract

This study presents the main developments in the manufacturing industry in Cameroon, based on firm-level data covering the 1980-95 period. The emphasis is on structural factors of competitiveness. A production function and an export function are estimated in order to study the determinants of total factor productivity (TFP) and export performance. The results provide evidence indicating that openness to trade, development of skilled labour and adequate management of the real exchange rate are crucial factors for the enhancement of productivity and exports. Moreover, a mutually reinforcing relationship between productivity and export performance is demonstrated. The performance of the manufacturing sector in Cameroon has deteriorated considerably since the mid-1980s. This decline is to a degree explained by Dutch disease and inward-looking policies in the manufacturing sector, resulting in a highly overvalued real effective exchange rate (REER). Based on the estimated export and ... L’industrie manufacturière au Cameroun est analysée dans ce document. L’étude, fondée sur des données d’enquête couvrant la période 1980-95, porte sur les facteurs structurels de la compétitivité. Une fonction de production et une fonction d’exportation sont estimées dans le but d’étudier les déterminants de la productivité globale des facteurs et de la performance à l’exportation. Les résultats indiquent que l’ouverture commerciale, le développement de la main-d’œuvre qualifiée ainsi qu’une bonne gestion du taux de change réel sont des facteurs importants pour la croissance de la productivité et des exportations. Une relation dynamique entre les exportations et la productivité est également mise en évidence. La performance de l’industrie manufacturière au Cameroun s’est dégradée depuis le milieu des années 80. Ce déclin est en partie expliqué par des effets de syndrome hollandais ainsi que par des régimes commerciaux relativement fermés, ce qui a entraîné une importante ...

Suggested Citation

  • Ludvig Söderling, 1999. "Structural Policies for International Competitiveness in Manufacturing: The Case of Cameroon," OECD Development Centre Working Papers 146, OECD Publishing.
    • Handle: RePEc:oec:devaaa:146-en
    DOI: 10.1787/712324150453
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