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GTAP Resource #1342

"The Economic Effects of Integration in the Central African Economic and Monetary Community: Some General Equilibrium Estimates for Cameroon"
by Tarr, David G. and Ferdinand Bakoup

In this paper we quantitatively assess the impact of the CEMAC on its largest member, Cameroon. We find that Cameroon will gain between 0.41 and 0.62 percent of its GDP. Our decomposition shows that the part of the agreement that calls for further preferential reduction of tariffs is immiserizing, although given the low level of intra-regional imports, the quantitative impact is quite small. Improved access to partner country markets accounts for about one-quarter of the gains. We find, however, that about three-quarters of the gains come from reduction of Cameroon's tariff against the rest of the world. Moreover, our estimates for Cameroon's unilateral trade liberalization show that it can gain marginally even more from full unilateral trade liberalization than it can from implementation of the CEMAC arrangements. Our results incorporate, in an otherwise small open economy model, the fact that Cameroon may possess regional market power, and we assess the difference in results with models that have no regional market power.

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Resource Details (Export Citation) GTAP Keywords
Category: Other CGE Application
Status: Published
By/In: African Development Review, Vol. 12, No. 3, December
Date: 2000
Created: Tarr, D. (8/8/2003)
Updated: Tarr, D. (8/28/2007)
Visits: 1,355
No keywords have been specified.

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