Influence of Bilateral Aid on Cameroon's Bilateral Trade Performance with Respect to OECD Donor Countries

Dazoue Dongue Guy Paulin (), Nemb Pierre Samuel () and Abessolo Yves André ()
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Dazoue Dongue Guy Paulin: University of Maroua-Cameroon
Nemb Pierre Samuel: University of Maroua-Cameroon
Abessolo Yves André: University of Maroua-Cameroon

EuroEconomica, 2017, issue 2(36), 169-178

Abstract: The purpose of this work is to study the coherence for development between the Official Development Assistance (ODA) and the foreign trade of Cameroon .Sub-Saharan African countries are the least integrated countries in world trade at the same time as the region is the main beneficiary region of ODA. It is also the region where poverty is increasing most. It seems that the inefficiency of the ODA is due to an incoherence of the policy of official development aid and the other policies of the countries of the North with respect to the Countries of the South. To elucidate this paradox, an empirical study is carried out on the link between ODA and foreign trade of Cameroon. Thus the gravity model measuring the impact of the bilateral ODA flow on Cameroon's bilateral trade flow with 16 OECD countries is specified. The estimates of this model using the Ordinary Least Squares method show that the increase in the volume of official development assistance increases the volume of imports of Cameroon from this donor country. At the same time, this increase in bilateral aid causes a decline in Cameroon's exports to this partner. Through official development assistance, donor countries improve their trade balances to the detriment of Cameroon.

Keywords: Official Development Assistance; North-South trade; effectiveness of ODA; coherence of development policies (search for similar items in EconPapers)
Date: 2017
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