How Do Industrial Enterprises Respond to Policy Reforms? Supply Response in Cameroon

How Do Industrial Enterprises Respond to Policy Reforms? Supply Response in Cameroon

Between 1986 and 1993, adverse terms of trade shocks combined with a rigidly pegged nominal exchange rate and various domestic distortions to reduce Cameroon's per capita income by roughly 50 percent. Though major policy reforms were slow to c...

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Main Authors: Tybut, J., Gauthier, B., Barba-Navaretti, G., De Melo, J.
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
CREDIBILITY
DEVALUATION
DOMESTIC INVESTORS
EXCHANGE RATE
EXPANSION
EXPORTER
EXPORTERS
EXPORTS
FINANCIAL CONSTRAINTS
FIRMS
INCENTIVE STRUCTURE
INCOME
INDUSTRIAL ENTERPRISES
INFLATION
INSTITUTIONAL ENVIRONMENT
INVESTING
LIBERALIZATION
MANUFACTURING ENTERPRISES
OUTPUT
PER CAPITA INCOME
PRODUCTIVITY GROWTH
PROFIT MARGINS
REAL EXCHANGE RATE
REGULATORY BURDENS
REGULATORY FRAMEWORK
SMALL FIRMS
TAX
TAX COLLECTION
TAX RATES
TAX REGIMES
Online Access:http://documents.worldbank.org/curated/en/1997/05/12862024/industrial-enterprises-respond-policy-reforms-supply-response-cameroon
http://hdl.handle.net/10986/9932
id okr-10986-9932
recordtype oai_dc
spelling okr-10986-99322021-04-23T14:02:47Z How Do Industrial Enterprises Respond to Policy Reforms? Supply Response in Cameroon Tybut, J. Gauthier, B. Barba-Navaretti, G. De Melo, J. CREDIBILITY DEVALUATION DOMESTIC INVESTORS EXCHANGE RATE EXPANSION EXPORTER EXPORTERS EXPORTS FINANCIAL CONSTRAINTS FIRMS INCENTIVE STRUCTURE INCOME INDUSTRIAL ENTERPRISES INFLATION INSTITUTIONAL ENVIRONMENT INVESTING LIBERALIZATION MANUFACTURING ENTERPRISES OUTPUT PER CAPITA INCOME PRODUCTIVITY GROWTH PROFIT MARGINS REAL EXCHANGE RATE REGULATORY BURDENS REGULATORY FRAMEWORK SMALL FIRMS TAX TAX COLLECTION TAX RATES TAX REGIMES Between 1986 and 1993, adverse terms of trade shocks combined with a rigidly pegged nominal exchange rate and various domestic distortions to reduce Cameroon's per capita income by roughly 50 percent. Though major policy reforms were slow to come, the Chartered Financial Analyst (CFA) franc was finally devalued in 1994. A study conducted on more than 200 manufacturing enterprises in Cameroon, before and after devaluation and reforms. The 1994 devaluation of the CFA franc dramatically increased the price of imported intermediate goods. This increase in costs was large enough to substantially reduce profits at some firms, particularly those that were heavily dependent upon imported intermediates. However, at firms using domestic inputs, and especially at firms producing exportable goods, the increase in input costs was more than offset by rising output prices, and profit margins improved. Labor costs rose by roughly the rate of inflation overall, so they went up relative to output prices in non-traded goods sectors, and fell relative to output prices in others. 2012-08-13T09:55:01Z 2012-08-13T09:55:01Z 1997-05 http://documents.worldbank.org/curated/en/1997/05/12862024/industrial-enterprises-respond-policy-reforms-supply-response-cameroon http://hdl.handle.net/10986/9932 English Africa Region Findings & Good Practice Infobriefs; No. 87 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Africa Cameroon
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CREDIBILITY
DEVALUATION
DOMESTIC INVESTORS
EXCHANGE RATE
EXPANSION
EXPORTER
EXPORTERS
EXPORTS
FINANCIAL CONSTRAINTS
FIRMS
INCENTIVE STRUCTURE
INCOME
INDUSTRIAL ENTERPRISES
INFLATION
INSTITUTIONAL ENVIRONMENT
INVESTING
LIBERALIZATION
MANUFACTURING ENTERPRISES
OUTPUT
PER CAPITA INCOME
PRODUCTIVITY GROWTH
PROFIT MARGINS
REAL EXCHANGE RATE
REGULATORY BURDENS
REGULATORY FRAMEWORK
SMALL FIRMS
TAX
TAX COLLECTION
TAX RATES
TAX REGIMES
spellingShingle CREDIBILITY
DEVALUATION
DOMESTIC INVESTORS
EXCHANGE RATE
EXPANSION
EXPORTER
EXPORTERS
EXPORTS
FINANCIAL CONSTRAINTS
FIRMS
INCENTIVE STRUCTURE
INCOME
INDUSTRIAL ENTERPRISES
INFLATION
INSTITUTIONAL ENVIRONMENT
INVESTING
LIBERALIZATION
MANUFACTURING ENTERPRISES
OUTPUT
PER CAPITA INCOME
PRODUCTIVITY GROWTH
PROFIT MARGINS
REAL EXCHANGE RATE
REGULATORY BURDENS
REGULATORY FRAMEWORK
SMALL FIRMS
TAX
TAX COLLECTION
TAX RATES
TAX REGIMES
Tybut, J.
Gauthier, B.
Barba-Navaretti, G.
De Melo, J.
How Do Industrial Enterprises Respond to Policy Reforms? Supply Response in Cameroon
geographic_facet Africa
Cameroon
relation Africa Region Findings & Good Practice Infobriefs; No. 87
description Between 1986 and 1993, adverse terms of trade shocks combined with a rigidly pegged nominal exchange rate and various domestic distortions to reduce Cameroon's per capita income by roughly 50 percent. Though major policy reforms were slow to come, the Chartered Financial Analyst (CFA) franc was finally devalued in 1994. A study conducted on more than 200 manufacturing enterprises in Cameroon, before and after devaluation and reforms. The 1994 devaluation of the CFA franc dramatically increased the price of imported intermediate goods. This increase in costs was large enough to substantially reduce profits at some firms, particularly those that were heavily dependent upon imported intermediates. However, at firms using domestic inputs, and especially at firms producing exportable goods, the increase in input costs was more than offset by rising output prices, and profit margins improved. Labor costs rose by roughly the rate of inflation overall, so they went up relative to output prices in non-traded goods sectors, and fell relative to output prices in others.
format Publications & Research :: Brief
author Tybut, J.
Gauthier, B.
Barba-Navaretti, G.
De Melo, J.
author_facet Tybut, J.
Gauthier, B.
Barba-Navaretti, G.
De Melo, J.
author_sort Tybut, J.
title How Do Industrial Enterprises Respond to Policy Reforms? Supply Response in Cameroon
title_short How Do Industrial Enterprises Respond to Policy Reforms? Supply Response in Cameroon
title_full How Do Industrial Enterprises Respond to Policy Reforms? Supply Response in Cameroon
title_fullStr How Do Industrial Enterprises Respond to Policy Reforms? Supply Response in Cameroon
title_full_unstemmed How Do Industrial Enterprises Respond to Policy Reforms? Supply Response in Cameroon
title_sort how do industrial enterprises respond to policy reforms? supply response in cameroon
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/1997/05/12862024/industrial-enterprises-respond-policy-reforms-supply-response-cameroon
http://hdl.handle.net/10986/9932
_version_ 1764411193767755776

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