Liberalization and cocoa market integration in Cameroon

Abstract : This paper evaluates the impact of markets liberalization in Cameroon on prices transmission of between the international cocoa market and domestic market in Cameroon. This paper use the threshold cointegration and the error correction models which are ap- plied on the annual cocoa prices series collected on international cocoa market and on Cameroon’s cocoa market for the period 1961-2015. For over fifty years, the findings show that the transmission of international cocoa prices on cocoa market in Cameroon is not total and imediate. Furthermore, the liberalization has not significantly improved the extent of long-run and short-run cocoa market integration. The speed of price adjustment is relatively weak. In order to improve market efficiency, it is suggested that the government should improve market information system and means of transportation in cocoa production areas.

Keywords : cocoa, market, integration, price, liberalization, Cameroon.

Jel Classification : G14, G18, Q17, Q18.

DOI: https://doi.org/10.18559/RIELF.2019.2.6