Trade reform and efficiency in Cameroon's manufacturing industries
Does trade reform generate gains in manufacturing firm-level technical efficiency? Pooling of pre and post trade reform data for Cameroon, and estimating a single stochastic production frontier for each industrial sector, yielded empirical results showing that the average technical efficiency increased in six of eight sectors following trade reform. The post trade reform firm-level technical efficiencies increased on average at an annual rate of 1.39%, while prior to trade reform they decreased on average at the annual rate of 0.76%. Before trade reform, the restricted trade regime coupled with macroeconomic and political instability negatively affected firm-level technical efficiency. Post trade reform potential determinants of firms’ technical efficiency include export share and import penetration rate.
HC 502 . A 43 2003
Cameroon - Commercial Policy , Manufacturing - Industries - Government Policy - Cameroon , Industrial efficiency - Cameroon , Trade reform , manufacturing sector