Opening of alcoholic drink establishments during the Coronavirus period in Cameroon: scope and economic consequences

Ngouhouo, Ibrahim and Tchoffo, Rodrigue and Younchawou, Ngouwouo and Tafakeu, Marie-Josée (2021): Opening of alcoholic drink establishments during the Coronavirus period in Cameroon: scope and economic consequences.

Abstract

The objective of this article is to evaluate the impacts of alcoholic products on the Cameroonian economy following the government decision on opening alcoholic drink establishments during the period of the highest expansion of coronavirus pandemic. This objective is achieved through a dynamic CGE analysis. The main data come from a social accounting matrix for 2016 calibrated on the Cameroonian economy. As findings, a 50% increase of total alcoholic consumption in 2020 increases the demand of that sector whether the final demand or the intermediate input. The government income may increase in 2020, 2021 and 2024 but may decrease in 2021 and 2022. It may impact positively the GDP in the medium term. Finally, the well-being may be positively impacted by the year 2024.

• Item Type: MPRA Paper
• Language: English
• Keywords: alcoholic drink, government policy, public revenue, well-being, CGE
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C68 - Computable General Equilibrium Models; F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies ; Fragmentation; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H27 - Other Sources of Revenue

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