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global trade distortions: impact on agricultural market and farm income in Cameroon

초록/요약

ABSTRACT. In the world, markets face a lot of distortions; with agricultural markets being more vulnerable and facing the heaviest of distortions. The most common of these distortions is the tariff. To a greater or lesser extent, most African countries tend to feel the pinch more because a majority of the African population live in the rural areas and embark on agriculture as their main occupation. Reflecting on my research paper, my focus would be concentrated on market openness and free trade. Cameroon and other developing African countries will tend to benefit more on trade openness from the developed nations than when there were trade barriers. But looking at the situation at hand, a lot of things need to be fulfilled by the Cameroonian government to see that these benefits reach the peasant farmers. The Cameroon government and the international bodies that be (like the WTO, FAO), must put heads together to how these benefits reach the rural farmers and results in attaining the goal of poverty reduction. If not then the farmers and the rural population at large would remain under the poverty line. This paper has identified some of the focal pints to hit on, both at the macro level and at the micro level. At the macro level, all the parties involved should put heads together to results on the market distortions that plaque agricultural exports from Africa while at the micro level, the results show that for the benefits to filtered right to the farmers’ hands, they must have access to market information, good infrastructure, fertilizer, subsidies, modern science techniques. All these would go a long way not only to boost productivity but also quality and eventually move away from the poverty line. Using the StataIC13 version, my results predict a rise in farm income and therefore alleviating rural poverty.

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목차

CHAPTER 1: INTRODUCTION.I
1.1 Cameroon in brief 1
1.2 Cameroons Agricultural Sector 2
1.3 The economic situation of Cameroon.. 7
1.4 Statement of problem 9
1.5 Significance of the study. 10
1.6 Research objectives. 10
1.7 Research questions 10
CHAPTER 2 LITERATURE REVIEW 11
2.1 Agriculture: concept and its importance 11
2.2 Importance of Agriculture. 12
2.3 Cameroons trade in brief 14
2.4 Perspectives of other scholars. 15
2.5 Theoretical framework 22
CHAPTER 3 MODEL OPERATION 24
3.1 Methodology. 25
3.2 Choosing between fixed and random effect 26
3.3 Testing of my Model. 27
3.3.1 Multicollinearity. 27
3.3.2 Serial correlation testing. 30
3.3.3 Heteroskedasticity test 31
3.4 Model Operation 34
3.5 Hypothesis. 36
3.6 Results and interpretation 36
3.7 Hypothesis testing. 39
3.8Data 41
3.9 Result analysis. 42
3.9.1 Link between access to electricity and farm income 42
3.9.2 Link between price distortion and farm income. 42
3.9.3 Link between fertilizer consumption and farm income 43
3.9.4 Link between production (value added per worker) and farm income 44
3.9.4 Link between tariff and farm income. 44

4.0 CHAPTER 4 CONCLUSION.. 47
4.1 Research findings 47
4.2 Limitation 48
4.3 Lessons, implications and focus area 48
REFERENCES 50
APPENDIX A: Cross-sectional time-series FGLS regression. 52
APPENDIX B: Fixed-effects (within) regression. 53
APPENDIXC: Random-effects GLS regression. 53

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