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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Firm-Level Responses to the CFA Devaluation in Cameroon
Authors:Tybout, J.
Gauthier, B.ISNI
Navaretti, G.B.
de Melo, J.
Periodical:Journal of African Economies
Geographic term:Cameroon
Economics and Trade
External link:https://jae.oxfordjournals.org/content/6/1/3.full.pdf
Abstract:This article assesses the impact of the CFA franc devaluation of January 1994 on industrial enterprises in Cameroon. It is based on survey data collected by the Centre d'études en administration internationale at the University of Montreal for the Regional Programme on Enterprise Development of the World Bank. Three rounds of a multipurpose survey were administered between 1993 and 1995 among approximately 200 firms in four manufacturing subsectors - wood, textile, food and metal. The article documents firms' reactions to the devaluation in terms of adjustments in output, factor usage, market orientation and productivity. It shows that the devaluation had the expected effect of increasing the return to producing tradable goods, and increased the real cost of using imported intermediate goods. The pooled sample registered a cumulative rate of productivity growth exceeding 8 percent over the 1992/1993 to 1994/1995 period. Exporters appear to have done better than non-exporters, and medium-sized firms appear to have done worst. Encouraging signs of efficiency gains are present. The devaluation also influenced export supplies. Firms with low unit costs were relatively likely to become exporters, and tradable goods producers, who were favoured by the devaluation, expanded output. Bibliogr., notes, ref., sum.