Inter-Temporal Decomposition of Poverty and Inequality in the Distibution of Living Standards in Cameroon

Abstract
This study attempts to carry out a comprehensive analysis of the evolution of poverty and inequality trends using ECAM I and ECAM II collected in 1996 and 2001 respectively. The theoretical decomposition frameworks propelling the study are motivated mainly by the Shapley value while empirical estimates are obtained from DAD 4.4.

From our findings, we observe that Rural forest and Rural highlands regions were hardest hit by poverty and inequality trends in Cameroon. The result shows that the within-regions effects were found to be more instrumental in accounting for changes in all the classes of poverty measures than the inter-sector population shift effects in the period under review. While the between-region effects were systematically contributing in alleviating poverty in the Rural forest and Rural highlands and at the same time aggravating poverty in Yaounde, Douala.

As concerning inequality, we observed the dominant contribution of the within-group inequality in the distribution of living standard in Cameroon and the between-group contribution to inequality trends was found to be non negligible. On the global scale, inequality retreated at the national level, Yaounde, Douala and Rural savannah regions in the period 1996-2001. However, inequality got worse in Rural forest, Rural highlands as well as other towns in Cameroon.

Basing on our result, we suggests that policies and strategies for reducing poverty/inequality should place particular emphasis on the countryside and on a region-by-region approach such as decentralization. Increase provision of rural extension services (roads, electricity, markets, portable water………).