Original Sin and Natural Hedge in CEMAC Area

Original Sin and Natural Hedge in CEMAC Area

Scott Régifère Mouandat

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Richelmy Etendino Nkombe

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Christin Baudrey Ndong Abessolo

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1 Bongo University

Original Sin and Natural Hedge in CEMAC Area

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Abstract

The purpose of this article is to see whether export gains are likely to neutralize, even partially, the effect of the valuation of US dollar-denominateddebt in the EMCCA area. The aim is therefore to verify the effectiveness of the natural hedge. Taking the period 1995-2019, we use an empirical method 5based on the heterogeneous dynamic panel estimator with commoncorrelated effects. We find that the natural hedgeis inefficient, i.e., the export gains from nominal exchange rate changes do not cover the original sin valuation effect of these same changes. The results of our estimates call for a rethinking of the integration of EMCCA countries into world trade, given that an integration based on the development of large-scale exports is a sine qua non for the effectiveness of natural hedging.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Scott Régifère Mouandat. 2026. \u201cOriginal Sin and Natural Hedge in CEMAC Area\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 23 (GJMBR Volume 23 Issue B1): .

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GJMBR Volume 23 Issue B1
Pg. 45- 58

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-B Classification: JEL Code: C23. E44. F31. F34. H63

Submission ReceivedJanuary 15, 2023
Peer Review Double Blind
Handling Editor
Accepted January 23, 2023
Published January 23, 2026

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v1.2

Issue date

February 6, 2023

Language

English

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