Convergence of the Economies of Nigeria and Cameroon: An Empirical Verification with the Ben-David Model

The purpose of this paper is the study of the convergence of the economies of Nigeria and Cameroon. Are these neighboring countries with an increasingly high level of trade converging? It thus seeks, on the one hand, to verify whether the standards of living (income per capita) of the two economies tend to approach each other over time and, on the other hand, to determine the time necessary for the two countries to fill by half the gap that separates them. Ben David's (1996) empirical model is estimated using WDI time series. The results show that Cameroon reduces the per capita income gap that separates it from Nigeria. The half-life of the convergence process indicates that Cameroon will manage to close half of the gap that separates it from Nigeria in 37 years, all things remaining equal. Thus, if Cameroon wants to accelerate its catch-up, the improvement of its savings rate, its labor productivity and its economic growth rate must be at the heart of economic policies.