Politique budgétaire et production du secteur industriel au Cameroun

Fiscal policy and production of the industrial sector in Cameroon

Louis Henri Ngah Ntiga, Belmondo Tanankem and Olivier Nguemjom Bouya

MPRA Paper from University Library of Munich, Germany

Abstract: In 2020, Cameroon began the implementation of the second phase of its long run development strategy, the National Development Strategy 2020-2030 (NDS 30). Development Strategy 2020-2030 (NDS 30). The NDS 30 aims at the structural transformation of the economy. One of the tools that would stimulate industrial production is fiscal policy, which, thanks to its instruments, would favour industrial development in Cameroon. Thus, this work aims to analyse the effect of fiscal policy on the production of the industrial sector. To achieve this, a To achieve this, a vector error correction model was used after the chronicles were all integrated all integrated to the same order. The Johansen (1987) test shows that there is a cointegrating relationship between the series and the estimation of the VECM model reveals a short and long run relationship between industrial production and fiscal policy. The results show that tax revenues once delayed The results show that tax revenues, once delayed, have a positive effect on industrial production, whereas the same industrial production, once delayed, has a negative effect in the short run. Thus, governments Thus, governments should direct tax revenues much more towards the industrial sector and ensure that industrial value added is used for investment purposes.

Keywords: production of the industrial sector; fiscal policy (search for similar items in EconPapers)
JEL-codes: E62 L5 L6 (search for similar items in EconPapers)
Date: 2022, Revised 2022
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