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Decomposing the Effects of Economic Policies on Poverty Trends in Cameroon: A Double Calibration Micro Simulated General Equilibrium Analysis

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  • Emini, Christian Arnault
  • Kanmi Feunou, Dorine

Abstract

This paper aims at bringing out the determinants of the significant poverty alleviation observed in Cameroon between 1993 and 2001. It focuses on the decomposition of poverty and growth changes, in order to assess the intrinsic contribution of each major economic policy implemented in Cameroon during this period. A double calibration technique, within a micro-simulated computable general equilibrium model was used to that effect. Findings obtained reveal that the devaluation, the rehabilitation of infrastructures, and the VAT enforcement respectively contributed for two percent, 9 percent and -4 percent in the poverty alleviation; for one percent, 11 percent, and three percent in explaining GDP growth; and for 65 percent, zero percent and 11 percent in the rise of the consumer price index (CPI). Beside revealing the intrinsic impacts of aforementioned policies, the double calibration approach made it possible to realize that technological changes arose between 1993 and 2001 alone stand to explain up to 31 percent of the nationwide decline in poverty, 45 percent of the GDP growth, and 4 percent of the CPI increase. The notion of technological changes refers here to changes occurred across the time in the values of scale parameters contained in production and product differentiation functions.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14820.

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Date of creation: Nov 2008
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Handle: RePEc:pra:mprapa:14820

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Keywords: Double calibration; Impacts decomposition; Micro simulation; Devaluation; CGE models; Technological changes; Tax and Customs reforms; Basic infrastructure.;

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  1. Lisandro Abrego & John Whalley, 1999. "The Choice of Structural Model in Trade-Wages Decompositions," NBER Working Papers 7312, National Bureau of Economic Research, Inc.
  2. John Cockburn, 2004. "Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis," Development and Comp Systems 0409012, EconWPA.
  3. Dumont, Jean-Christophe & Mesplé-Somps, Sandrine, 2000. "L'impact des infrastructures publiques sur la compétitivité et la croissance. Une analyse en EGC appliquée au Sénégal," Economics Papers from University Paris Dauphine 123456789/4928, Paris Dauphine University.
  4. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  5. Cogneau, Denis & Robilliard, Anne-Sophie, 2000. "Growth, distribution and poverty in Madagascar," TMD discussion papers 61, International Food Policy Research Institute (IFPRI).
  6. Cogneau, Denis & Collange, Gérald, 1997. "Les effets à moyen terme de la dévaluation des francs CFA. Une comparaison Cameroun / Côte d’Ivoire à partir d’un modèle micro-macro dynamique et financier," Economics Papers from University Paris Dauphine 123456789/5149, Paris Dauphine University.
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