ON THE SUSTAINABILITY OF CURRENT ACCOUNT DEFICITS IN CAMEROON
Two approaches are used to analyze the sustainability of the current account deficits of Cameroon in order to find out whether current economic policies are sound enough to guarantee the country’ s financial solvency. The first uses a structural procedure to compare current account deficits relativ...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2013-04-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://www.econjournals.com/index.php/ijefi/article/view/422/pdf |
| _version_ | 1797917729616822272 |
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| author | Edouard T. Djeutem Pierre E. Nguimkeu |
| author_facet | Edouard T. Djeutem Pierre E. Nguimkeu |
| author_sort | Edouard T. Djeutem |
| collection | DOAJ |
| description | Two approaches are used to analyze the sustainability of the current account deficits of Cameroon in order to find out whether current economic policies are sound enough to guarantee the country’ s financial solvency. The first uses a structural procedure to compare current account deficits relative to an optimal benchmark using the Campbell-Shiller’s methodology. The second uses a reduced form approach to test for intertemporal budget constraint through cointegration tests between imports and exports plus net transfer payments on foreign obligations. Our results suggest that the current account imbalances for Cameroon based on data from the period 1970-2002 are “excessive” and the deficits are currently unsustainable. |
| first_indexed | 2024-04-10T13:18:03Z |
| format | Article |
| id | doaj.art-6a66aa3a3c48441f96c3cb63dd97bb9c |
| institution | Directory Open Access Journal |
| issn | 2146-4138 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T13:18:03Z |
| publishDate | 2013-04-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-6a66aa3a3c48441f96c3cb63dd97bb9c2023-02-15T16:12:11ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382146-41382013-04-0132486495ON THE SUSTAINABILITY OF CURRENT ACCOUNT DEFICITS IN CAMEROONEdouard T. DjeutemPierre E. NguimkeuTwo approaches are used to analyze the sustainability of the current account deficits of Cameroon in order to find out whether current economic policies are sound enough to guarantee the country’ s financial solvency. The first uses a structural procedure to compare current account deficits relative to an optimal benchmark using the Campbell-Shiller’s methodology. The second uses a reduced form approach to test for intertemporal budget constraint through cointegration tests between imports and exports plus net transfer payments on foreign obligations. Our results suggest that the current account imbalances for Cameroon based on data from the period 1970-2002 are “excessive” and the deficits are currently unsustainable.http://www.econjournals.com/index.php/ijefi/article/view/422/pdf |
| spellingShingle | Edouard T. Djeutem Pierre E. Nguimkeu ON THE SUSTAINABILITY OF CURRENT ACCOUNT DEFICITS IN CAMEROON International Journal of Economics and Financial Issues |
| title | ON THE SUSTAINABILITY OF CURRENT ACCOUNT DEFICITS IN CAMEROON |
| title_full | ON THE SUSTAINABILITY OF CURRENT ACCOUNT DEFICITS IN CAMEROON |
| title_fullStr | ON THE SUSTAINABILITY OF CURRENT ACCOUNT DEFICITS IN CAMEROON |
| title_full_unstemmed | ON THE SUSTAINABILITY OF CURRENT ACCOUNT DEFICITS IN CAMEROON |
| title_short | ON THE SUSTAINABILITY OF CURRENT ACCOUNT DEFICITS IN CAMEROON |
| title_sort | on the sustainability of current account deficits in cameroon |
| url | http://www.econjournals.com/index.php/ijefi/article/view/422/pdf |
| work_keys_str_mv | AT edouardtdjeutem onthesustainabilityofcurrentaccountdeficitsincameroon AT pierreenguimkeu onthesustainabilityofcurrentaccountdeficitsincameroon |