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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.

Suggested Citation

  • Emini, Christian Arnault & Kanmi Feunou, Dorine, 2008. "Decomposing the Effects of Economic Policies on Poverty Trends in Cameroon: A Double Calibration Micro Simulated General Equilibrium Analysis," MPRA Paper 14820, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:14820
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    References listed on IDEAS

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    Cited by:

    1. Whitten, Greg, 2014. "Sector-specific bilateral trade and currency unions," Conference papers 332544, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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    More about this item

    Keywords

    Double calibration; Impacts decomposition; Micro simulation; Devaluation; CGE models; Technological changes; Tax and Customs reforms; Basic infrastructure.;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - 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, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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