Investigating the Effect of Trade Openness and Agriculture on Deforestation in Cameroon

Abstract

This study aimed to measure the effect of trade openness and agriculture on deforestation in Cameroon from 1980 to 2021 by using a fully modified ordinary least squares (FMOLS) approach. Data used are from the World Bank and FAO. The results obtained indicate that when trade openness increases, deforestation also increases, but when trade openness increases up to a certain threshold, deforestation decreases. This study also reveals that agriculture is one of the major causes of deforestation in Cameroon. Agricultural output and agricultural value-added both have a positive and significant impact on deforestation. There is an inverted curve relationship between economic growth and deforestation in Cameroon, this shows that the EKC is respected with deforestation as it is postulated that at higher levels of income, GDP turns to reduce deforestation meaning a unit change in GDP2 leads to a reduction of deforestation. We recommend the implementation of concrete actions and strict environmental policies focused on a green economy, to control the exploitation of natural resources with particular attention to the sustainable exploitation of wood. Sustainable agricultural practices should also be implemented, as well as more suitable liberal trade policies.