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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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Author Info
Emini, Christian Arnault
Kanmi Feunou, Dorine

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

Find related papers by JEL classification:
H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. John Cockburn, 2004. "Trade Liberalisation and Poverty in Nepal A Computable General Equilibrium Micro Simulation Analysis," Development and Comp Systems 0409012, EconWPA. [Downloadable!]
  2. Jean-Christophe Dumont & Sandrine Mesplé-Somps, 2000. "L'impact des infrastructures publiques sur la compétitivité et la croissance : une analyse en EGC appliquée au Sénégal," Working Papers DT/2000/08, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  4. Cogneau, Denis & Robilliard, Anne-Sophie, 2000. "Growth, distribution and poverty in Madagascar," TMD discussion papers 61, International Food Policy Research Institute (IFPRI). [Downloadable!]
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