Trade reforms and real convergence in CEMAC

Abstract

This paper tests the process of real convergence hypothesis among CEMAC member countries between 1990-2002. Within the analyzed period our findings lend support to the "convergence club" defined according to policy choices rather than initial levels of technology. They show that unilateral and preferential suppression of tariff and non-tariff barriers favor the convergence of per capita GDP and reduce the dispersion of real per capita income levels of partners in the sub region. These results make the idea of convergence club based on the initial levels of productive technology and GDP per capita relative.