
Contents
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26.1 Introduction 26.1 Introduction
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26.2 Model and Data 26.2 Model and Data
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26.2.1 Model 26.2.1 Model
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26.2.2 Data, Background, and Descriptive Statistics 26.2.2 Data, Background, and Descriptive Statistics
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26.3 Policy Simulations 26.3 Policy Simulations
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26.3.1 Impact on Entrepreneurship 26.3.1 Impact on Entrepreneurship
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26.3.2 Impact on Productivity 26.3.2 Impact on Productivity
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26.4 Conclusion and Policy Recommendations 26.4 Conclusion and Policy Recommendations
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Note Note
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References References
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26 Fiscal Decentralization, Entrepreneurship, and Firm Productivity in Cameroon
Get accessPierre Nguimkeu, Georgia State University
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Published:26 January 2023
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Abstract
This chapter investigates the impact of fiscal decentralization on entrepreneurship and firm productivity in Cameroon. Drawing on Bougna & Nguimkeu (2020)’s model, we simulate counterfactual changes in taxation policy on the regional distribution of firm outcomes. Our results show the potential of optimal and adapted tax reforms in fostering business creation, increased formalization and aggregate income gains across and within regions in Cameroon. Our findings suggest that a well-targeted regionally decentralized taxation policy has the potential to improve the overall socio-economic ecosystem by attracting an optimal size of entrepreneurship in each region and hence favoring a more efficient cross-regional distribution of income. Policy recommendations include the need to empower regional authorities to design and implement tailored based fiscal policies that account for regional heterogeneity, cities’ specialization and comparative advantages.
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