Trade Policies, Regional Integration, Poverty and Income Distribution in Senegal

PEP working paper serie 2007-15

25 Pages Posted: 17 May 2018 Last revised: 12 Jul 2018

See all articles by Abdoulaye Diagne

Abdoulaye Diagne

Université Cheikh Anta Diop; University of Angers - Centre de Recherche en Epistémologie Appliquée (CREA)

François Joseph Cabral

Université Cheikh Anta DIOP - Faculté des Sciences Economiques et de Gestion ; Consortium for Economic and Social Research (CRES); Université de Sherbrooke - Research Group in Economics and International Development (Gredi)

Fatou Cissé

Université Cheikh Anta Diop

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2008

Abstract

Since January 2002, within the framework of the sub-regional economic integration process of the West African Economic and Monetary Union (WAEMU), Senegal has adopted a Common External Tariff (CET) and harmonization of the tax system. These measures have considerably reduced the protection of its economy (50% reduction in customs duties) and consolidated its domestic tax system. This paper assesses, using a computable general equilibrium model, the impact on the well-being of both rural and urban households of trade liberalization scenarios in Senegal.

Results show that Government has given more priority to fiscal consolidation than to the potential negative effects of a higher VAT on income distribution and the well-being of households. This arbitration is in line with the spirit of local stabilization and adjustment policies, which have always been characterized by primacy of fiscal rehabilitation over improvements in the competitiveness of the economy.

Keywords: Computable general equilibrium model, poverty analysis, trade policy, income distribution, regional integration

Suggested Citation

Diagne, Abdoulaye and Cabral, François Joseph and Cissé, Fatou, Trade Policies, Regional Integration, Poverty and Income Distribution in Senegal (September 1, 2008). PEP working paper serie 2007-15, Available at SSRN: https://ssrn.com/abstract=3173113 or http://dx.doi.org/10.2139/ssrn.3173113

Abdoulaye Diagne (Contact Author)

Université Cheikh Anta Diop ( email )

B.P. 5005
Dakar-Fann 16996
Senegal

University of Angers - Centre de Recherche en Epistémologie Appliquée (CREA)

Ecole Polytechnique
1, rue Descartes
75005 Paris
France

François Joseph Cabral

Université Cheikh Anta DIOP - Faculté des Sciences Economiques et de Gestion ( email )

B.P. 5005
Dakar-Fann 16996
Senegal
2218250530 (Phone)
2218250530 (Fax)

HOME PAGE: http://www.ucad.sn

Consortium for Economic and Social Research (CRES)

Orrantia del Mar Lima
Peru

Université de Sherbrooke - Research Group in Economics and International Development (Gredi)

Sherbrooke, Quebec
Canada

Fatou Cissé

Université Cheikh Anta Diop ( email )

B.P. 5005
Dakar-Fann 16996
Senegal

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