Exports have continued
to play an important role in the economy of many developing countries. In this
way the level of economic growth, employment and the balance of payments can be
promoted. In Cameroon, the government has initiated several trade policy
reforms aimed at promoting the export sector. This notwithstanding the
country’s share in total world exports remains very low. Given the central role
of exports in the economy, it was important to identify the plausible factors
affecting export flows between Cameroon and her trading partners using an
augmented gravity trade model. The panel dataset used covered a period from
1995 to 2014. The results showed that Cameroon’s GDP, importer’s GDP, real
exchange rate, population and official common language had a positive and
statistically significant effect on Cameroon’s exports. The study further
showed that the distance between Cameroon and its trading partners had a
negative and statistical significant effect on export flows. These results
provide some policy insights which can enhance trade and foster economic
growth, notably improvement in infrastructural development which is linked to
transportation cost.
No comments:
Post a Comment