A Financial Social Accounting Matrix for the Integrated Macroeconomic Model for Poverty Analysis: Application to Cameroon with a Fixed-Price Multiplier Analysis

World Bank Policy Research Working Paper No. 3219

51 Pages Posted: 25 Apr 2009

Date Written: February 1, 2004

Abstract

Cameroon is engaged in the Poverty Reduction Strategy Paper (PRSP) process, which emphasizes increased focus on poverty reduction in the design and implementation of growth and adjustment strategies. The Integrated Macroeconomic Model for Poverty Analysis (IMMPA) framework recently developed at the World Bank provides an analytical structure for supporting the PRSP process and quantifying poverty reduction strategies. Drawing on that framework, this paper provides a detailed financial social accounting matrix for the Cameroonian economy to serve as input into the construction of an IMMPA model for Cameroon. An analysis of this financial SAM shows that the dramatic fall in investment during the crisis period persisted in the post-devaluation growth period in the late 1990s. Continued low investment has implications for ongoing high unemployment rates and poor welfare indicators. This is illustrated by simulations based on fixed-price multiplier analysis, which highlight the potential growth and welfare benefits of increased public investment, following hypothetical debt relief and reduction of external debt servicing within the framework of the Highly Indebted Poor Countries Initiative.

Keywords: Backward and forward linkages, financial social accounting matrix, fixed-price multipliers, poverty reduction strategy papers, integrated macroeconomic model for poverty analysis (IMMPA)

JEL Classification: C68, D31, D57, O11

Suggested Citation

Emini, Christian Arnault and Fofack, Hippolyte, A Financial Social Accounting Matrix for the Integrated Macroeconomic Model for Poverty Analysis: Application to Cameroon with a Fixed-Price Multiplier Analysis (February 1, 2004). World Bank Policy Research Working Paper No. 3219. Available at SSRN: https://ssrn.com/abstract=1393624 or http://dx.doi.org/10.2139/ssrn.1393624

Christian Arnault Emini (Contact Author)

University of Yaounde II ( email )

Yaounde
Cameroon

Hippolyte Fofack

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

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