On the Sustainability of Current Account Deficits in Cameroon

Volume: 3 Number: 2 June 1, 2013
  • Edouard T. Djeutem
  • Pierre E. Nguimkeu
EN

On the Sustainability of Current Account Deficits in Cameroon

Abstract

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.

Keywords

Details

Primary Language

English

Subjects

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Journal Section

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Authors

Edouard T. Djeutem This is me

Pierre E. Nguimkeu This is me

Publication Date

June 1, 2013

Submission Date

June 1, 2013

Acceptance Date

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Published in Issue

Year 2013 Volume: 3 Number: 2

APA
Djeutem, E. T., & Nguimkeu, P. E. (2013). On the Sustainability of Current Account Deficits in Cameroon. International Journal of Economics and Financial Issues, 3(2), 486-495. https://izlik.org/JA22XA76SH
AMA
1.Djeutem ET, Nguimkeu PE. On the Sustainability of Current Account Deficits in Cameroon. IJEFI. 2013;3(2):486-495. https://izlik.org/JA22XA76SH
Chicago
Djeutem, Edouard T., and Pierre E. Nguimkeu. 2013. “On the Sustainability of Current Account Deficits in Cameroon”. International Journal of Economics and Financial Issues 3 (2): 486-95. https://izlik.org/JA22XA76SH.
EndNote
Djeutem ET, Nguimkeu PE (June 1, 2013) On the Sustainability of Current Account Deficits in Cameroon. International Journal of Economics and Financial Issues 3 2 486–495.
IEEE
[1]E. T. Djeutem and P. E. Nguimkeu, “On the Sustainability of Current Account Deficits in Cameroon”, IJEFI, vol. 3, no. 2, pp. 486–495, June 2013, [Online]. Available: https://izlik.org/JA22XA76SH
ISNAD
Djeutem, Edouard T. - Nguimkeu, Pierre E. “On the Sustainability of Current Account Deficits in Cameroon”. International Journal of Economics and Financial Issues 3/2 (June 1, 2013): 486-495. https://izlik.org/JA22XA76SH.
JAMA
1.Djeutem ET, Nguimkeu PE. On the Sustainability of Current Account Deficits in Cameroon. IJEFI. 2013;3:486–495.
MLA
Djeutem, Edouard T., and Pierre E. Nguimkeu. “On the Sustainability of Current Account Deficits in Cameroon”. International Journal of Economics and Financial Issues, vol. 3, no. 2, June 2013, pp. 486-95, https://izlik.org/JA22XA76SH.
Vancouver
1.Edouard T. Djeutem, Pierre E. Nguimkeu. On the Sustainability of Current Account Deficits in Cameroon. IJEFI [Internet]. 2013 Jun. 1;3(2):486-95. Available from: https://izlik.org/JA22XA76SH