+ All Categories
Home > Documents > The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

Date post: 09-Feb-2016
Category:
Upload: kail
View: 20 times
Download: 0 times
Share this document with a friend
Description:
Workshop on Economic Partnership Agreements (EPAs) For Southern Africa Maputo (Mozambique) 4 – 5 April 2005. The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon. Christian Arnault Émini The University of Yaoundé II - Cameroon. John Cockburn - PowerPoint PPT Presentation
Popular Tags:
43
Christian Arnault Émini The University of Yaoundé II - Cameroon Workshop on Economic Partnership Agreements (EPAs) For Southern Africa Maputo (Mozambique) 4 – 5 April 2005 The Poverty Impacts of the Doha The Poverty Impacts of the Doha Round and the Role of Tax Policy: Round and the Role of Tax Policy: A Case Study for Cameroon A Case Study for Cameroon John Cockburn Université Laval – Quebec, Canada Bernard Decaluwé Université Laval – Quebec, Canada
Transcript
Page 1: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

Christian Arnault Émini

The University of Yaoundé II - Cameroon

Workshop on Economic Partnership Agreements (EPAs)

For Southern Africa

Maputo (Mozambique) 4 – 5 April 2005

The Poverty Impacts of the Doha The Poverty Impacts of the Doha Round and the Role of Tax Policy:Round and the Role of Tax Policy:

A Case Study for CameroonA Case Study for Cameroon

John CockburnUniversité Laval – Quebec, Canada

Bernard DecaluwéUniversité Laval – Quebec, Canada

Page 2: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

Background on economy and poverty in Cameroon

Current patterns of trade and protection in Cameroon

Synopsis of the Doha impacts on CameroonDigression on the issue of tax replacementConclusions

SUMMARYSUMMARY

Page 3: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon
Page 4: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

4

Openness of the Cameroonian EconomyOpenness of the Cameroonian Economy

Real GDP Trends Before, During, and Beyond Real GDP Trends Before, During, and Beyond the 1986-1994 Economic Crisisthe 1986-1994 Economic Crisis

-1400

-1050

-700

-350

0

350

700

1050

140019

81

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

Years

Rea

l GD

P pe

r cap

ita .

in 1

990

US$

.

-20

-15

-10

-5

0

5

10

15

20

Gro

wth

Rat

es in

%

.

Real GDP per capita in 1990US$ Real GDP per capita Growth Rate (%)

Real GDP Growth Rate (%)

Page 5: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

5

Trend in povertyTrend in poverty

53.3

40.2

19.113.8

9 6.4

0

10

20

30

40

50

60

Perc

enta

ges

.

Poverty headcount Poverty gap Poverty severity

Poverty indices

1996 2001

Trend in poverty indices between 1996 and 2001Trend in poverty indices between 1996 and 2001

Page 6: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

6

Trend in povertyTrend in poverty

18.2

27.8

6.8

12

3.2

6.6

0

5

10

15

20

25

30

Perc

enta

ge p

oint

s .

Poverty headcount Poverty gap Poverty severityPoverty indices

1996 2001

Difference between the value of a poverty index among Difference between the value of a poverty index among rural households and the value of that index among rural households and the value of that index among

urban householdsurban households

Page 7: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

7

Trend in povertyTrend in poverty

Bounds of Poverty HeadcountIndex at Provincial level

20.9 %33.7 %40.2 %46.8 %58.5 %

Bounds of Poverty HeadcountIndex at Subdividional level

03.3%37.0%41.9%48.6%96.2%

Page 8: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

8

Trend in povertyTrend in poverty

Relative Contribution to PovertyBounds Based on Poverty Headcount by Division

0.1%1.2%1.5%2.1%8.0%

Page 9: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

9

The Cameroon Social Accounting Matrix for 2001 The Cameroon Social Accounting Matrix for 2001

Sets Sets Description of elementsDescription of elements

Activities(10)

Agriculture (2) Foodstuffs agriculture, Cash crops agriculture

Industries (6)Forestry, Crude oil, Processed food, Processed wood, Refined petroleum, Miscellaneous industries

Services (2) Tradable services, Public services

Institutions (10995)

Households (10992) As processed from the results of the 2001 household survey in Cameroon (ECAM II)

Others (3) Firms, Government, Rest of the World

Production Factors

Agricultural Labor Skilled Labor, Unskilled Labor

Nonagricultural Labor Skilled Labor, Unskilled Labor

Capital Sector-specific

Land Used by agricultural activities

Page 10: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

10

Households’ Income CompositionHouseholds’ Income Composition

Income sourcesHousehold groups

Urban Rural Male-led Female-led Poor Non poor

Skilled agricultural labor 1.5 13.4 7.2 4.6 11.1 5.1

Unskilled agricultural labor 1.0 33.9 15.9 14.7 33.7 8.2

Skilled nonagricultural labor 58.4 19.6 40.9 41.5 18.1 50.6

Unskilled nonagricultural labor 11.8 11.4 11.7 10.6 13.4 10.8

Agricultural capital 1.2 12.1 6.4 4.0 14.7 2.5

Nonagricultural capital 26.0 7.8 16.9 23.7 7.4 22.2

Land 0.1 1.8 0.9 0.8 1.7 0.5

Total factor income 100.0 100.0 100.0 100.0 100.0 100.0

Page 11: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon
Page 12: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

12

Openness of the Cameroonian EconomyOpenness of the Cameroonian Economy

Trends in exports and importsTrends in exports and imports

0

200

400

600

800

1000

1200

1400

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

Years

Val

ues

(Bill

ions

of C

FA F

ranc

s)...

Exports Imports

Page 13: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

13

Openness of the Cameroonian EconomyOpenness of the Cameroonian Economy

Trends in Trade BalanceTrends in Trade Balance

104%97%95%

112%122%

112%

144%

164%

137%

67%59%60%

72%

87% 92%97%

107%100%

25%

50%

75%

100%

125%

150%

175%

1995 1996 1997 1998 1999 2000 2001 2002 2003

Cov

erag

e R

ate

of Im

ports

by

Expo

rts

. .

-600

-400

-200

0

200

400

600

Trad

e B

alan

ce in

.B

illio

ns o

f CFA

Fra

ncs

.

Overall Trade Balance Net of Oil Trade Balance

Overall Coverage Rate of Imports by Exports Net of Oil Coverage Rate

Page 14: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

14

Openness of the Cameroonian EconomyOpenness of the Cameroonian Economy

44.50

14.83

7.99

4.91

4.81

9.89

13.41

15.26

17.82

8.15

30 15 0 15 30 45

Crude Oil

Processed Wood

Broad-Bean Cocoa

Refined Petrol

Raw Cotton

Cereals & starches

Vehicles

Chemicals

Machinery

Hydrocarbons

Percentage with regard to total Imports or Total Exports

Export Product Import Product

55%

77%

Top-Five Import and Export Goods in 2003Top-Five Import and Export Goods in 2003

Page 15: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

15

Openness of the Cameroonian EconomyOpenness of the Cameroonian Economy

Cameroon’s Trade Orientation in 2003Cameroon’s Trade Orientation in 2003

800 600 400 200 0 200 400 600 800 1 000

Latin America

Northern America

Asia

Africa

Europe

Billions of CFA Francs

Imports From … Exports Towards …

Page 16: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

16

Openness of the Cameroonian EconomyOpenness of the Cameroonian Economy

0

10

20

30

40

50

60

70

80

90

100

Perc

enta

ge

Crude oil Misc.industries

Foodprocessing

Refinedpetroleum

Tradableservices

Foodstuffagriculture

Forestry Woodprocessing

Cash cropsagriculture

Publicservices

Products

Import Penetration Export Orientation

Import penetration and export orientation (in percentage)Import penetration and export orientation (in percentage)

Page 17: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

17

Openness of the Cameroonian EconomyOpenness of the Cameroonian Economy

Import tariffs and shares in the base run – 2001Import tariffs and shares in the base run – 2001(in percentage)(in percentage)

0

10

20

30

40

50

60

Perc

enta

ge .

Processedwood

Processedfood

Refinedpetroleum

Misc.industries

Foodstuffsagriculture

Cash cropsagriculture

Forestry Crude oil Tradableservices

Publicservices

Products

Import tariff Share in total imports

Page 18: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon
Page 19: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

19

Synopsis of the Doha impacts on CameroonSynopsis of the Doha impacts on Cameroon

Sectors of production

Percent changes in world prices from GTAP Tariffs (in percent)

Export prices

Import prices

Original tariffs

Cut in tariffs

New tariffs

Foodstuffs agriculture 0.015 2.233 12.2 -2.77 11.9Cash crops agriculture -0.177 -0.284 8.0 -0.49 8.0Forestry -0.122 -0.108 7.4 -1.83 7.3Crude oil 0.111 0.114 3.2 0.00 3.2Food processing 0.115 3.234 23.8 -8.70 21.7Wood processing -0.061 -0.064 28.1 -0.54 27.9Refined petroleum 0.105 0.073 18.3 -0.27 18.3Miscellaneous industries 0.103 0.017 14.6 -0.74 14.5Tradable services -0.064 -0.024 0.0 -0.00 0.0Public services 0.000 0.000 0.0 -0.00 0.0All sectors 0.044 0.471 11.79 -1.10 11.66

Changes in import-export prices and in tariffsChanges in import-export prices and in tariffs

Page 20: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

20

Synopsis of the Doha impacts on CameroonSynopsis of the Doha impacts on Cameroon

Macro and sectoral impactsMacro and sectoral impacts

-0.130

0.170

0.07-0.15

0.210.06

0.29-0.55

0.22-0.01

0.34-0.2

-0.6 -0.5 -0.4 -0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4Percent changes

Real exchange rate

Output

Exports

Locally sold output

Imports

Total absorption

Household consumption

Effects on price and volume indices

Change in price indices Change in volume indices

Page 21: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

21

Synopsis of the Doha impacts on CameroonSynopsis of the Doha impacts on Cameroon

Sectors of production

Percent changes in prices by sector

Output Export Import

Locally sold

output without

tax

Locally sold

output with

taxes

Absorption

Household consumpti

on

Foodstuffs agriculture 0.44 0.19 1.95 0.44 0.44 0.46 0.46Cash crops agriculture 0.09 -0.02 -0.32 0.16 0.16 0.16 0.16Forestry -0.02 -0.06 0.03 -0.01 -0.01 -0.01 -0.01Crude oil 0.11 0.11 0.11 0.11 0.11 0.11 0.00Food processing 0.60 0.29 1.54 0.63 0.63 0.76 0.97Wood processing -0.05 -0.05 0.05 -0.05 0.04 0.04 0.21Refined petroleum 0.04 0.08 0.12 0.02 0.08 0.09 0.13Miscellaneous industries 0.07 0.08 0.12 0.07 0.11 0.11 0.24Tradable services 0.02 -0.02 -0.02 0.03 0.06 0.05 0.07Public services 0.38 0.00 0.00 0.38 0.38 0.38 0.00All sectors 0.17 0.07 0.29 0.19 0.21 0.22 0.34

Page 22: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

22

Synopsis of the Doha impacts on CameroonSynopsis of the Doha impacts on Cameroon

Sectors of production

Percent changes in volumes by sector

Output Export ImportLocally

sold output

Absorption Household consumption

Foodstuffs agriculture 0.04 -1.03 -6.15 0.06 0.00 -0.1Cash crops agriculture -0.30 -0.95 3.45 0.23 0.23 0.0

Forestry -0.14 -0.36 -0.32 -0.11 -0.11 0.0

Crude oil 0.00 0.00 -0.04 0.00 -0.03 0.0

Food processing 0.47 -1.07 -3.87 0.60 0.05 -0.4Wood processing -0.06 -0.05 -0.06 -0.03 -0.03 -0.2

Refined petroleum -0.04 0.14 -0.26 -0.12 -0.13 -0.2

Miscellaneous industries 0.05 0.13 -0.02 0.05 0.03 -0.2

Tradable services -0.09 -0.25 0.24 -0.07 -0.05 -0.2

Public services 0.00 0.00 0.00 0.00 0.00 0.0

All sectors 0.00 -0.15 -0.55 0.06 -0.01 -0.2

Page 23: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

23

Synopsis of the Doha impacts on CameroonSynopsis of the Doha impacts on Cameroon

Macro and sectoral impactsMacro and sectoral impacts

-0.21

0.13

0.13

0.30.260.25

0.390.15

-0.010.5

-0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5Percentages

Household welfare

Household consumption budgetHousehold gross income

LandAll capital types

Nonagricultural capitalAgricultural capital

All labor typesNonagricultural labor

Agricultural labor

Effects on factor remuneration rates, household income and welfare

EV as percentage of initial consumptionChange in household budgetChange in factor remuneration rate

Change in CPI: +0.34

Page 24: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

24

Change in households’ IncomeChange in households’ Income

Income sources

Household groups

Urban Rural

Share (%) Change (%) Share (%) Change (%)

Skilled agricultural labor 1.5 0.47 13.4 0.48

Unskilled agricultural labor 1.0 0.40 33.9 0.51

Skilled nonagricultural labor 58.4 -0.04 19.6 0.00

Unskilled nonagricultural labor 11.8 0.02 11.4 0.00

Agricultural capital 1.2 0.49 12.1 0.43

Nonagricultural capital 26.0 0.03 7.8 0.70

Land 0.1 0.00 1.8 0.03

Total factor income 100.0 0.00 100.0 0.34

Page 25: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

25

Change in households’ IncomeChange in households’ Income

Income sources

Household groups

Male-led Female-led

Share (%) Change (%) Share (%) Change (%)

Skilled agricultural labor 7.2 0.49 4.6 0.43

Unskilled agricultural labor 15.9 0.51 14.7 0.44

Skilled nonagricultural labor 40.9 -0.03 41.5 -0.03

Unskilled nonagricultural labor 11.7 0.01 10.6 -0.01

Agricultural capital 6.4 0.45 4.0 0.31

Nonagricultural capital 16.9 0.18 23.7 0.09

Land 0.9 0.03 0.8 0.00

Total factor income 100.0 0.17 100.0 0.10

Page 26: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

26

Change in households’ IncomeChange in households’ Income

Income sources

Household groups

Poor in base run Non poor in base run

Share (%) Change (%) Share (%) Change (%)

Skilled agricultural labor 11.1 0.48 5.1 0.48

Unskilled agricultural labor 33.7 0.51 8.2 0.49

Skilled nonagricultural labor 18.1 -0.01 50.6 -0.03

Unskilled nonagricultural labor 13.4 0.01 10.8 0.01

Agricultural capital 14.7 0.45 2.5 0.40

Nonagricultural capital 7.4 0.43 22.2 0.13

Land 1.7 0.03 0.5 0.03

Total factor income 100.0 0.32 100.0 0.09

Page 27: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

27

Poverty impactsPoverty impacts

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

Perc

ent .

Cameroon Urbanhouseholds

Ruralhouseholds

Male-ledhouseholds

Female-ledhouseholds

Percentage changes in poverty and inequality indices

Poverty headcount Poverty gap Poverty severity Gini index

Page 28: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

28

Poverty impactsPoverty impacts

-10.00-8.00-6.00-4.00-2.000.002.004.006.008.00

Perc

ent

Food

Indu

stry

Build

ing

and

Bree

ding

Agric

ultu

re,

Food

Tra

deM

inin

gTe

xtile

Woo

dC

hem

ical

Indu

stry

of

Met

als,

Ener

gy, G

as,

Tran

spor

tG

ener

alH

otel

and

Bank

s an

dN

ot C

lass

ified

Oth

er T

rade

sM

isce

llane

ous

Publ

ic

Percent change in poverty headcount by occupational activity of the head of household

Page 29: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

29

Poverty impactsPoverty impacts

Number of former poor people who

escape from poverty

Number of former non poor people

who become poor

Net change in the number of poor

people

A B C=B-A

56,000 14,000 -42,000

Estimates of changes in the number of poor Estimates of changes in the number of poor following the Doha scenariofollowing the Doha scenario

Page 30: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon
Page 31: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

31

Digression on the issue of Tax ReplacementDigression on the issue of Tax Replacement

To capture the possible bias induced by the choice of the replacement tax, we compare the effects of combined ROW and Cameroon liberalization using alternatively two taxation systems as replacement tax: A Value Added Tax A proportional household consumption tax.

VAT versus neutral consumption tax as VAT versus neutral consumption tax as replacement taxreplacement tax

Page 32: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

32

Digression on the issue of Tax ReplacementDigression on the issue of Tax Replacement

Importance of the VAT among indirect taxes Importance of the VAT among indirect taxes in Cameroon – year 2001in Cameroon – year 2001

53

27

19 1

0

10

20

30

40

50

60

Perc

enta

ge

Value AddedTax

Import tariffs Excises andmisc. Taxes

Export duties

Share in total revenue of indirect taxes

Page 33: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

33

Digression on the issue of Tax ReplacementDigression on the issue of Tax Replacement

The VAT applied in Cameroon is progressiveThe VAT applied in Cameroon is progressive

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Perc

ent

1 2 3 4 5 6 7 8 9 10Household groups by deciles .

Effective rate of VAT paid by household decilesAverage

VAT effective

rate

Page 34: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

34

Digression on the issue of Tax ReplacementDigression on the issue of Tax Replacement

Comparative effectsComparative effects on price indices on price indices

9.02

5.98

-7.57

-4.92

-1.5 -0.79

-8.69

-4.59

-10.85

-5.71

-9.01

-4.72

-7.72

-2.4

-12-10-8-6-4-202468

10

Perc

ent c

hang

es

Realexchange

rate

Output Exports Locally soldoutput

Imports Totalabsorption

Householdconsumption

Scenario with neutral consumption replacement taxScenario with VAT as replacement tax

Page 35: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

35

Digression on the issue of Tax ReplacementDigression on the issue of Tax Replacement

Comparative effectsComparative effects on volume indices on volume indices

-0.03 -0.01

14.11

9.65

-2.41-0.8

13.91

9.53

-0.46 0.44

-4.62-2.64

-6

-4-2

02

46

810

1214

16

Perc

ent c

hang

es

Output Exports Locally soldoutput

Imports Total absorption Householdconsumption

Scenario with neutral consumption replacement taxScenario with VAT as replacement tax

Page 36: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

36

Digression on the issue of Tax ReplacementDigression on the issue of Tax Replacement

Comparative effectsComparative effects on factor remuneration on factor remuneration rates, household income and welfarerates, household income and welfare

-12

-10

-8

-6

-4

-2

0

Perc

enta

ge c

hang

e .

Agr

icul

tura

lla

bor

Non

agric

ultu

ral

labo

r

Com

posi

tela

bor

Agr

icul

tura

lca

pita

l

Non

agric

ultu

ral

capi

tal

Tota

l cap

ital

Land

Hou

seho

ldgr

oss

inco

me

Hou

seho

ldco

nsum

ptio

nbu

dget

EV

as

% o

fin

itial

cons

umpt

ion

Neutral consumption tax as replacement tax VAT as replacement tax

Page 37: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

37

Digression on the issue of Tax ReplacementDigression on the issue of Tax Replacement

Comparative effectsComparative effects on household income on household income

-10

-9

-8

-7

-6

-5

-4

-3

-2

-1

0

Perc

ent c

hang

e

Urbanhouseholds

Ruralhouseholds

Male-ledhouseholds

Female-ledhouseholds

Poor people inbase run

Non poorpeople in base

run

Neutral consumption tax as replacement tax VAT as replacement tax

Page 38: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

38

Digression on the issue of Tax ReplacementDigression on the issue of Tax Replacement

Comparative effectsComparative effects on poverty headcount on poverty headcount

16.38

10.69

33.67

22.93

13.19

8.43

18.65

12.31

8.88

5.36

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Perc

ent c

hang

e

Cameroon Urbanhouseholds

Ruralhouseholds

Male-ledhouseholds

Female-ledhouseholds

Neutral consumption tax as replacement tax VAT as replacement tax

Page 39: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

39

Digression on the issue of Tax ReplacementDigression on the issue of Tax Replacement

Comparative effects on the number of poorComparative effects on the number of poorNumber of

former poor people who escape from

poverty

Number of former non poor

people who become poor

Net change in the number of poor people

A B C=B-ANeutral consumption tax as the replacement tax

63,000 999,000 +936,000

VAT as the replacement tax 43,000 708,000 +665,000

Page 40: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon
Page 41: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

41

ConclusionsConclusions

Doha development round might contribute to poverty alleviation in Cameroon

However, policymakers should be aware of: The importance of choosing appropriate replacement

taxes

The negative poverty impacts of the elimination of domestic tariffs

The evidence that some households will lose out and possibly fall into poverty, even if national poverty rates fall.

Page 42: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

42

ConclusionsConclusions

Free-trade in ROW strongly alleviates poverty, at least at

the national level

Whereas Cameroon’s own liberalization worsens the

poverty and inequality situations

In case of combined ROW and own liberalization, the

adverse impacts of own liberalization proves to strongly

outweigh the favorable outcomes of the ROW

liberalization.

Page 43: The Poverty Impacts of the Doha Round and the Role of Tax Policy: A Case Study for Cameroon

Recommended