Impact of COVID-19 on the Economic Stability of Cameroon
Mohamadou Oumarou,
Yaoudey Dabal Nina,
Arfa Nasser Bakary,
Faycal Aminou
Issue:
Volume 8, Issue 4, December 2022
Pages:
72-81
Received:
28 July 2022
Accepted:
12 August 2022
Published:
27 December 2022
DOI:
10.11648/j.ash.20220804.11
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Abstract: The general objective of this article is to assess the economic stability in Cameroon, the macroeconomic consequences of COVID-19 since the start of the pandemic, in particular from 2019, until 2021. To this end, the data was collected from the WEO database of the International Monetary Fund (IMF). All other things being equal, the descriptive analysis of the selected variables, the tests of stationarity and correlation of the series corroborate with the hypothesis. Subsequently, these tests guided the choice of the econometric regression to be applied in this study, in this case the test of cointegration of the variables of the model. The results obtained show that: (i) In terms of elasticities, a 1% increase in exports leads to a decrease of 0.095861% in the GDP growth rate in Cameroon. A 1% increase in imports leads to an increase in economic growth of 0.1014%. This is explained by the fact that pharmaceutical products and protective equipment, as well as basic food products, the availability of which has been affected by the crisis, are mostly imported. (ii) An increase in the national debt of 1% leads to a decrease in economic growth of 4.61E-06%. Indeed, the level of indebtedness has increased in recent years with the onset of the crisis. (iii) An increase in public administration expenditure of 1% leads to a decrease in economic growth of 46.3079%. This is explained by the presence of an investment policy likely to respond to the current health crisis. Therefore, to mitigate the effects of the pandemic, it is important for the Cameroonian government to directly support businesses and indirectly households through mechanisms for the digitalization of structures, which will require an increase in public debt.
Abstract: The general objective of this article is to assess the economic stability in Cameroon, the macroeconomic consequences of COVID-19 since the start of the pandemic, in particular from 2019, until 2021. To this end, the data was collected from the WEO database of the International Monetary Fund (IMF). All other things being equal, the descriptive anal...
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