Determinants Of Important Demand For Cameroon 1968-88

ABSTRACT

arnrruon has ' bse n facing a 'current account d e f i c i t

n i tlcc: 1 '1f?7 and w i l l cor~t;j.nucb t o do 80 in -Lklc ne:lrest

future. This will imply a n e t , resource d r a i n at a time

w ! ~ t : n lent:-term c a p i t a l inves trrre nt l o o k s b l e a k give r l the

sk~i f ti n emphasis o f we s t e r n financial commitmerit.

'L'~I= c o u n t r y must therefore make urgent moves at a r r e s t i n g

t h i s d e f i c i t .

Increasinfy . e x p o r t s f o r Cameroon will bt? a very

a l f ' f l c u l t task and hence recourse has t o be taken . t o

reduce imports. The research therefore sought t o find

o u t t h e factors that i n l l u e n c e import demand i n the country.

l'he v a r i a h l s s t h z t were considered l i k e l y s u s p e c t s on

thilore t;ieal and empirical ground are, relative p r i c e s ,

, . r e a l d r o s s .Uomestic Product, e x p o r t e a r n i n g s ana money

3 ~ i p p l y . The method ot' a n a l y s i s is econornelric, the

technique m u l t i p l e regression. analysis, t h e f u n c t i o n a l

form lo!:-linear and the n:J.t.ure of the data time s e r i e s .

Yhe r e s u l t s i n d i c a t e that the t r a d i t i o n a l import

derwnd f u n c t i o n with r e l a t i v e p r i c e s and- income as explan

a t o r y variables s i g n i f i c a n t l y account f o r v a r i a t i o n s in

tlle l e v e l of imports i n Cameroon. dxport earning and money

supply also proved t o be s . i i : n i f i c a n t explcinatory v a r i a b l e s

3s L I I ~ . ~a rt, t'outld to increase s i q n i f i c a n t l y t h e coc f f i c i e n t

d r t e r m i n a t i o n o € the t r a d i t i o n a l import demirld f u n c t i o n .