Impact of COVID-19 on the Economic Stability of Cameroon

Mohamadou Oumarou; Yaoudey Dabal Nina; Arfa Nasser Bakary; Faycal Aminou

doi:doi:10.11648/j.ash.20220804.11

| Peer-Reviewed

Impact of COVID-19 on the Economic Stability of Cameroon

Mohamadou Oumarou, Yaoudey Dabal Nina, Arfa Nasser Bakary, Faycal Aminou

Published in Advances in Sciences and Humanities (Volume 8, Issue 4)

Received: 28 July 2022 Accepted: 12 August 2022 Published: 27 December 2022

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

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.

Published in	Advances in Sciences and Humanities (Volume 8, Issue 4)
DOI	10.11648/j.ash.20220804.11
Page(s)	72-81
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

COVID-19, Economic Stability, Cointegration Test, Cameroon

References

[1]	Baldwin R. and Tomivra E. (2020), Thinking ahead about the trade impact of COVID-19, Economics in the time of COVID-19, 59.
[2]	Barro R. J., Ursua J. F. and Weng J. (2020), “The coronavirus and the great influenza pandemic: Lesson from the “Spanish flu” for the coronavirus potential effects on mortality and economic activity”, CESifo Working Paper Series 8166, CESifo.
[3]	Dutta S., Kumar A., Dutta M. and Walsh C. (2021), Tracking COVID-19 vaccine hesitancy and logistical challenges: A machine learning approach. PLoS ONE 16 (6): e0252332.
[4]	FMI (2020), “COVID-19: An Unprecedented Threat to Development”, Regional Economic Outlook, Sub-Saharan Africa Report.
[5]	Guillaumont S. J. and Kpodar K. (2006), financial development, financial instability and economic growth. French Documentation\| "Economy & Forecast" 2006/3 n° 174 \| pages 87 to 111 ISSN 0249-4744.
[6]	Jordà O., Singh S. R. and Taylor A. M. (2020), “Longer-Run Economic Consequences of Pandemics”, Covid Economics: Vetted and Real-Time Papers 1, 1-15.
[7]	Maliszewska M., Mattoo A., and Van Der Mensbrugghe D. (2020), The potential impact of COVID-19 on GDP and trade: A prelimanary assessment the world Bank.
[8]	Mohamadou O. (2021), « COVID-19, Food Security and Household Income in Cameroon: An Approach by the Probit Regression Model », Global jounal of Human-Social Science (E), 21, 1, 8-18.
[9]	Oscar K. (2020), “The factsheets of the COVID-19: what is the real economic impact in Cameroon? An assessment with VAR methodology”, Munich Personal RePEc Archive-MPRA Paper No. 103127.
[10]	Peckham, R. (2013), “Economies of contagion: Financial crisis and pandemics”, Economy and society, 49, 2, 226-248.
[11]	Worldometer (2020), available on https://www.worldmeters.info/coronavirus/(access 03/07/2021).

Cite This Article

Plain Text BibTeX RIS

APA Style

Mohamadou Oumarou, Yaoudey Dabal Nina, Arfa Nasser Bakary, Faycal Aminou. (2022). Impact of COVID-19 on the Economic Stability of Cameroon. Advances in Sciences and Humanities, 8(4), 72-81. https://doi.org/10.11648/j.ash.20220804.11

Copy | Download

ACS Style

Mohamadou Oumarou; Yaoudey Dabal Nina; Arfa Nasser Bakary; Faycal Aminou. Impact of COVID-19 on the Economic Stability of Cameroon. Adv. Sci. Humanit. 2022, 8(4), 72-81. doi: 10.11648/j.ash.20220804.11

Copy | Download

AMA Style

Mohamadou Oumarou, Yaoudey Dabal Nina, Arfa Nasser Bakary, Faycal Aminou. Impact of COVID-19 on the Economic Stability of Cameroon. Adv Sci Humanit. 2022;8(4):72-81. doi: 10.11648/j.ash.20220804.11

Copy | Download

@article{10.11648/j.ash.20220804.11,
  author = {Mohamadou Oumarou and Yaoudey Dabal Nina and Arfa Nasser Bakary and Faycal Aminou},
  title = {Impact of COVID-19 on the Economic Stability of Cameroon},
  journal = {Advances in Sciences and Humanities},
  volume = {8},
  number = {4},
  pages = {72-81},
  doi = {10.11648/j.ash.20220804.11},
  url = {https://doi.org/10.11648/j.ash.20220804.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ash.20220804.11},
  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.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Impact of COVID-19 on the Economic Stability of Cameroon
AU  - Mohamadou Oumarou
AU  - Yaoudey Dabal Nina
AU  - Arfa Nasser Bakary
AU  - Faycal Aminou
Y1  - 2022/12/27
PY  - 2022
N1  - https://doi.org/10.11648/j.ash.20220804.11
DO  - 10.11648/j.ash.20220804.11
T2  - Advances in Sciences and Humanities
JF  - Advances in Sciences and Humanities
JO  - Advances in Sciences and Humanities
SP  - 72
EP  - 81
PB  - Science Publishing Group
SN  - 2472-0984
UR  - https://doi.org/10.11648/j.ash.20220804.11
AB  - 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.
VL  - 8
IS  - 4
ER  -

Copy | Download

Author Information

Mohamadou Oumarou

Department of Public Economics, Faculty of Economics and Management, University of Maroua, Maroua, Cameroon
Yaoudey Dabal Nina

Department of Public Economics, Faculty of Economics and Management, University of Maroua, Maroua, Cameroon
Arfa Nasser Bakary

Department of Public Economics, Faculty of Economics and Management, University of Maroua, Maroua, Cameroon
Faycal Aminou

Department of Public Economics, Faculty of Economics and Management, University of Maroua, Maroua, Cameroon

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Mohamadou Oumarou, Yaoudey Dabal Nina, Arfa Nasser Bakary, Faycal Aminou. (2022). Impact of COVID-19 on the Economic Stability of Cameroon. Advances in Sciences and Humanities, 8(4), 72-81. https://doi.org/10.11648/j.ash.20220804.11

Copy | Download

ACS Style

Mohamadou Oumarou; Yaoudey Dabal Nina; Arfa Nasser Bakary; Faycal Aminou. Impact of COVID-19 on the Economic Stability of Cameroon. Adv. Sci. Humanit. 2022, 8(4), 72-81. doi: 10.11648/j.ash.20220804.11

Copy | Download

AMA Style

Mohamadou Oumarou, Yaoudey Dabal Nina, Arfa Nasser Bakary, Faycal Aminou. Impact of COVID-19 on the Economic Stability of Cameroon. Adv Sci Humanit. 2022;8(4):72-81. doi: 10.11648/j.ash.20220804.11

Copy | Download

@article{10.11648/j.ash.20220804.11,
  author = {Mohamadou Oumarou and Yaoudey Dabal Nina and Arfa Nasser Bakary and Faycal Aminou},
  title = {Impact of COVID-19 on the Economic Stability of Cameroon},
  journal = {Advances in Sciences and Humanities},
  volume = {8},
  number = {4},
  pages = {72-81},
  doi = {10.11648/j.ash.20220804.11},
  url = {https://doi.org/10.11648/j.ash.20220804.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ash.20220804.11},
  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.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Impact of COVID-19 on the Economic Stability of Cameroon
AU  - Mohamadou Oumarou
AU  - Yaoudey Dabal Nina
AU  - Arfa Nasser Bakary
AU  - Faycal Aminou
Y1  - 2022/12/27
PY  - 2022
N1  - https://doi.org/10.11648/j.ash.20220804.11
DO  - 10.11648/j.ash.20220804.11
T2  - Advances in Sciences and Humanities
JF  - Advances in Sciences and Humanities
JO  - Advances in Sciences and Humanities
SP  - 72
EP  - 81
PB  - Science Publishing Group
SN  - 2472-0984
UR  - https://doi.org/10.11648/j.ash.20220804.11
AB  - 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.
VL  - 8
IS  - 4
ER  -

Copy | Download