Accounting for Heterogeneity in Growth Incidence in Cameroon

54 Pages Posted: 20 Apr 2016

See all articles by B. Essama-Nssah

B. Essama-Nssah

World Bank

Léandre Bassolé

affiliation not provided to SSRN

Saumik Paul

World Bank; University of Nottingham - Malaysia Campus

Date Written: November 1, 2010

Abstract

This paper presents counterfactual decompositions based on both the Shapley method and a generalization of the Oaxaca-Blinder approach to identify proximate factors that might explain differences in the distribution of economic welfare in Cameroon in 1996-2007. In particular, the analysis uses re-centered influence function regressions to link the growth incidence curve for 2001-2007 to household characteristics and account for heterogeneity of impact across quantiles in terms of the composition (or endowment) effect and structural (or price) effect. The analysis finds that the level of the growth incidence curve is explained by the endowment effect while its shape is driven by the price effect. Observed gains at the bottom of the distribution are due to returns to endowments. The rest of the gains are accounted for by the composition effect. Further decomposition of these effects shows that the composition effect is determined mainly by household demographics while the structural effect is shaped by the sector of employment and geography. Finally, analysis of the rural-urban gap in living standards shows that, for the poorest households in both sectors, differences in household characteristics matter more than the returns to those characteristics. The opposite is true for better-off households.

Keywords: Rural Poverty Reduction, Achieving Shared Growth, Regional Economic Development, Economic Theory & Research

Suggested Citation

Essama-Nssah, B. and Bassolé, Léandre and Paul, Saumik, Accounting for Heterogeneity in Growth Incidence in Cameroon (November 1, 2010). World Bank Policy Research Working Paper No. 5464, Available at SSRN: https://ssrn.com/abstract=1701525

B. Essama-Nssah (Contact Author)

World Bank ( email )

Washington, DC 20433
United States

Léandre Bassolé

affiliation not provided to SSRN

No Address Available

Saumik Paul

World Bank ( email )

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

University of Nottingham - Malaysia Campus ( email )

Jalan Broga
Semenyih
Selangor Darul Ehsan, Selangor 43500
Malaysia

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