The effects of exchange rate policy on Cameroon’s agricultural competitiveness
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Date
1996-03
Authors
AMIN, ALOYSIUS AJAB
Journal Title
Journal ISSN
Volume Title
Publisher
aerc
Abstract
The paper analyses the effects of trade and exchange rate policies on Cameroon's
agriculture. Theoretical models and formulas are developed for empirical analysis. The
calculated relative prices and indexes estimates of the degree of over-valuation of the
real exchange rate and regression analysis including elasticity estimates show that these policies have been the major cause of the deterioration of Cameroon's agricultural
competitiveness. The paper demonstrates the link between real exchange rates and
agricultural performance. Besides poor price incentives due to government's intervention
— and failure to intervene when appropriate the lack of non-price incentives is found
to hinder the development of the agricultural sector.
The paper concludes by recommending the removal of these constraints, and
intervention through devaluation and the maintenance of a realistic exchange rate, export
tax elimination, reduction of import taxes and increase in public expenditure in the
agricultural sector. It also suggests alternative ways of raising government revenue.
Description
HG 3986.4 .a45 1996
Keywords
Foreign Exchange rates - Cameroon , Agricultural prices - Cameroon