Macroeconomic Policies in Cameroon and Comparative Overview of the Oil-Rich Economies of CEMAC Region (Central African States) (original) (raw)

The Impact of the Liberalization of Petroleum Product Prices on the Economy of Cameroon

African Economic Research Consortium, Nairobi, 2018

This paper addresses the issue of the impact of liberalization of petroleum product prices on Cameroon’s economy, particularly on its macroeconomic aggregates, public finances and people’s living standards. It uses a methodology based on a Computable General Equilibrium model constructed from the Social Accounting Matrix of 43 activity sectors and 43 products. The results of the study show that the oil refining industry is the main channel through which fluctuations in crude oil prices on the international market affect the economy of Cameroon. If the price of oil per barrel is high, it is preferable, both on the economic level (growth, employment and public revenues) and the social level to maintain a low level of subsidies below 15% and, as a matter of priority, to re-allocate the economies made on these subsidies to social transfer-payment schemes and to measures aimed at sustaining the middle class’s purchasing power. But if there is a sharp fall in crude oil prices (below US$ 50 per barrel), a liberalization of the retail petroleum product prices could have positive effects on economic growth, on labour supply and on poverty reduction. The paper recommends the following: (i) a reduction in the country’s dependence on imports of crude oil by restructuring the national refining company; (ii) restructuring of the petroleum product price subsidy policy by adopting an inclusive approach; (iii) a setting up of a special fund for re-allocating the economies made on subsidies to financing targeted social programmes; (iv) diversification of exports and; (v) a setting up of a strategic structure to monitor the trends in and the forecasts of the prices of Cameroon’s main exports on the international market

Governance and Oil Revenues in Cameroon

2010

Oil has been a curse for Cameroon, one of the potentially richest countries in Sub-Saharan Africa. While the discovery of oil in 1977 and initial prudent management accentuated hopes, Cameroon has become an example of growth collapse. GDP contracted by 5% on average per year, a combined 27% over the 8-year period, dropping per capita income in 1993 to half

Petroleum Products Price Fluctuations and Economic Growth in Cameroon

Commodity exports have over the years been the main source of foreign exchange earnings to most developing countries. This is especially the case with crude oil producing countries such as Cameroon since the discovery of oil in the late 1970s. However, as evident in the economic crises era of the mid 1980s, this exposes the commodity dependent country to heavy external shocks such as price fluctuations which affect the level of growth of the country. It is in this light that this study was conducted to examine the effect of petroleum products (crude oil) price fluctuations on the economic growth of Cameroon. Secondary data from1980 to 2013 were used to estimate the coefficients of the ordinary least square technique used to analyse the dependency between the dependent and independent variables of the phenomenon. The results obtained reveal that petroleum product prices have a positive significant effect on the economic growth of Cameroon, while the volume of trade to GDP (openness) and real interest rate have a negative significant effect on the economic growth of the country. Human factors (demand and supply imbalances, and interest rates) and natural factors (geographical location and resource endowment) are the principal causes of variations in the prices of petroleum products among different regions. From these, it is suggested that for Cameroon to benefit from the global trade process by opening up to the rest of the world, the revenue generated from crude oil exploitation should be re-directed towards investment in both human and physical capital so as to enhance the productive capacity of the nation, especially in the manufacturing and transport sectors.

The dynamic relationship between oil wealth and economic growth: the case of Nigeria

2017

The problem of weak economic development in Nigeria despite a substantial inflow of revenues from oil exports especially from the early 1970s and other subsequent periods is an important issue to examine. This outcome presents a number of problems for any government regime in Nigeria seeking to provide solutions to enable the country to escape the adverse effects of natural resource wealth. At present, the Nigerian government is still struggling to find solutions to tackle the deteriorating state of affairs, particularly in terms of unemployment, rising food prices and internal security. The main aim of this study is to help understand the dynamic relationship between natural resource wealth and economic development. This research study analyses the trajectory of economic and political development in Nigeria over the period 1960 to 2010. This study employs historical political economy and empirical approaches in examining the relationship between oil wealth and economic development....