Trade Liberalisation, Poverty and Inequality in South Africa: A Computable General Equilibrium-Microsimulation Analysis

12 Pages Posted: 18 Sep 2007

See all articles by Nicolas Herault

Nicolas Herault

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Abstract

This paper studies the effects of trade liberalisation on poverty and income inequality in South Africa. The main issue of interest is the effect of international trade on households (especially their income). The approach presented in this paper relies on combining a macro-orientated computable general equilibrium model with a microsimulation model. The main concern regarding poor households is whether the decrease in nominal earnings for formal low-skilled and skilled workers is offset by the upward trend in formal employment levels. The analysis indicates that such a trade-off occurs, implying a decrease in poverty due to trade liberalisation.

Suggested Citation

Herault, Nicolas, Trade Liberalisation, Poverty and Inequality in South Africa: A Computable General Equilibrium-Microsimulation Analysis. Economic Record, Vol. 83, No. 262, pp. 317-328, September 2007, Available at SSRN: https://ssrn.com/abstract=1014706 or http://dx.doi.org/10.1111/j.1475-4932.2007.00417.x

Nicolas Herault (Contact Author)

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

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Parkville, Victoria 3010
Australia

HOME PAGE: http://www.findanexpert.unimelb.edu.au/researcher/person125238.html

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