Industrialization of the Manufacturing Sector and Trade Opening in Cameroon

Abstract

In this paper, the authors investigate the effect of trade opening on the industrialization of the manufacturing sector in Cameroon using the error correction model. The study uses data from the World Bank in the period 1967-2007. Our findings show that the long-term relationship between trade opening and industrialization of the manufacturing sector is not stable and that trade opening negatively affects the manufacturing sector of Cameroon. This result is explained by the fact that importations of some food products and inputs cannot be reduced. Moreover, Cameroon manufacturing enterprises are apparently unable to satisfy domestic demand.