How integration into the Central African Economic and Monetary Community affects Cameroon's economy: general equilibrium estimates
The authors quantify the impact on Cameroon of three aspects of its new regional trade agreement with the Central African Economic and Monetary Community (the CEMAC agreement): i) improved access to markets in CEMAC; ii) preferential tariff reduction; and iii) reduction of its external tariff through implementation of the common external tariff of CEMAC. They estimate that Cameroon will gain from the agreement but show how Cameroon's regional market power greatly affects the magnitude of its gains. They assume that Cameroon has regional market power in both imports and exports despite being small in world markets. They find that better access to partner markets and reduction of the external tariff explain virtually all of Cameroon's welfare gain. In their preferred scenario (Cameroon having regional market power), reduction of the external tariff explains three-quarters of the welfare gain. If Cameroon further reduces tariffs to its regional partners, the effect on its economy is a loss of real income but the impact is negligible. Should Cameroon's partners fail to provide tariff-free access to their markets, the authors estimate that, given Cameroon's regional market power, Cameroon would gain even more from free trade than it would from implementing the CEMAC arrangements.
|Date of creation:||31 Jan 1998|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
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.:
- Francois Joseph F & Wignaraja Ganeshan, 2008. "Economic Implications of Asian Integration," Global Economy Journal, De Gruyter, vol. 8(3), pages 1-48, September.
- Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1996.
"Economic implications for Turkey of a customs union with the European Union,"
Policy Research Working Paper Series
1599, The World Bank.
- Harrison, Glenn W. & Rutherford, Thomas F. & Tarr, David G., 1997. "Economic implications for Turkey of a Customs Union with the European Union," European Economic Review, Elsevier, vol. 41(3-5), pages 861-870, April.
- Faini, Ricardo, 1988.
"Export supply, capacity, and relative prices,"
Policy Research Working Paper Series
123, The World Bank.
- Rutherford, Thomas F. & Tarr, David G., 1998. "Trade liberalization and endogenous growth in a small open economy : a quantitative assessment," Policy Research Working Paper Series 1970, The World Bank.
- Rutherford, Thomas F. & Rutstrom, E.E. & Tarr, David, 1993. "Morocco's free trade agreement with the European community : a quantitative assessment," Policy Research Working Paper Series 1173, The World Bank.
- Vern Caddy, 1976. "Empirical Estimation of the Elasticity of Substitution : A Review," Centre of Policy Studies/IMPACT Centre Working Papers op-09, Victoria University, Centre of Policy Studies/IMPACT Centre.
- Devarajan, Shantayanan & de Melo, Jaime, 1990. "Membership in the CFA zone : Odyssean journey or Trojan horse?," Policy Research Working Paper Series 482, The World Bank.
- Devarajan, Shantayanan & Rodrik, Dani, 1991.
"Pro-competitive effects of trade reform : Results from a CGE model of Cameroon,"
European Economic Review,
Elsevier, vol. 35(5), pages 1157-1184, July.
- Shantayanan Devarajan & Dani Rodrik, 1989. "Pro-Competitive Effects of Trade Reform: Results from a CGE Model of Cameroon," NBER Working Papers 3176, National Bureau of Economic Research, Inc.
- Wonnacott, Paul & Wonnacott, Ronald, 1981. "Is Unilateral Tariff Reduction Preferable to a Customs Union? The Curious Case of the Missing Foreign Tariffs," American Economic Review, American Economic Association, vol. 71(4), pages 704-14, September.
- Devarajan, Shantayanan & de Melo, Jaime, 1987. "Evaluating participation in African monetary unions: A statistical analysis of the CFA Zones," World Development, Elsevier, vol. 15(4), pages 483-496, April.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1872. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.