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On the Sustainability of Current Account Deficits in Cameroon

Year 2013, Volume: 3 Issue: 2, 486 - 495, 01.06.2013

Edouard T. Djeutem Pierre E. Nguimkeu

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

Current account Sustainability Intertemporal budget constraint Cointegration Stationarity Ponzi scheme

Year 2013, Volume: 3 Issue: 2, 486 - 495, 01.06.2013

Edouard T. Djeutem Pierre E. Nguimkeu

Abstract

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Details

Other ID JA89KM38ZH
Journal Section Research Article
Authors

Edouard T. Djeutem This is me

Pierre E. Nguimkeu This is me

Publication Date June 1, 2013
Published in Issue Year 2013 Volume: 3 Issue: 2

Cite

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.
AMA Djeutem ET, Nguimkeu PE. On the Sustainability of Current Account Deficits in Cameroon. IJEFI. June 2013;3(2):486-495.
Chicago Djeutem, Edouard T., and Pierre E. Nguimkeu. “On the Sustainability of Current Account Deficits in Cameroon”. International Journal of Economics and Financial Issues 3, no. 2 (June 2013): 486-95.
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 E. T. Djeutem and P. E. Nguimkeu, “On the Sustainability of Current Account Deficits in Cameroon”, IJEFI, vol. 3, no. 2, pp. 486–495, 2013.
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 2013), 486-495.
JAMA 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, 2013, pp. 486-95.
Vancouver Djeutem ET, Nguimkeu PE. On the Sustainability of Current Account Deficits in Cameroon. IJEFI. 2013;3(2):486-95.