Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe

PEP Working Paper Series 2005-01

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

See all articles by Margaret Chitiga

Margaret Chitiga

Human Sciences Research Council of South Africa

Tonia Kandiero

Government of the Republic of South Africa - South Africa National Treasury

Ramos Emmanuel Mabugu

Financial and Fiscal Commission

Date Written: June 1, 2005

Abstract

The paper uses a micro-simulation computable general equilibrium (CGE) model to study the impact on poverty of trade liberalisation in Zimbabwe. The model incorporates 14006 households derived from the 1995 Poverty Assessment Study Survey (PASS). The novelty of this paper is that it is one among a small group of papers that incorporates individual households in the CGE model as opposed to having representative households, allowing for a comprehensive analysis of poverty. The complete removal of tariffs favours export- oriented sectors and all imports increase. Poverty falls in the economy while inequality hardly changes. The results differ between rural and urban areas.

Keywords: Computable General Equilibrium, Trade Liberalisation, Micro-Simulation, Poverty, Inequality

Suggested Citation

Chitiga, Margaret and Kandiero, Tonia and Mabugu, Ramos Emmanuel, Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe (June 1, 2005). PEP Working Paper Series 2005-01. Available at SSRN: https://ssrn.com/abstract=3173250 or http://dx.doi.org/10.2139/ssrn.3173250

Margaret Chitiga (Contact Author)

Human Sciences Research Council of South Africa ( email )

South Africa

Tonia Kandiero

Government of the Republic of South Africa - South Africa National Treasury ( email )

Pretoria
South Africa

Ramos Emmanuel Mabugu

Financial and Fiscal Commission ( email )

South Africa

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