Can Regional Integration Accelerate Development in Africa? CGE Model Simulations of the Impact of the SADC FTA on the Republic of Madagascar

32 Pages Posted: 26 Mar 2007

See all articles by Jean-Jacques Hallaert

Jean-Jacques Hallaert

International Monetary Fund (IMF); Groupe d'Economie Mondiale (GEM)

Date Written: March 2007

Abstract

Madagascar plans to start phasing out its customs tariffs on imports from the Southern African Development Community in 2007. This paper uses a CGE model to evaluate the impact of the SADC FTA on Madagascar economy. The results suggest that the SADC FTA would only have a limited impact on Madagascar's real GDP because the liberalization affects only a small share of its total imports. However, Madagascar's trade and production pattern would change and benefit the textile and clothing sector. Removing rigidities in the labor and capital market would increase the gains but they would remain limited. Gains from the SADC FTA become substantial only when the regional liberalization is accompanied by a multilateral liberalization.

JEL Classification: F13, F14, F15, F17

Suggested Citation

Hallaert, Jean-Jacques, Can Regional Integration Accelerate Development in Africa? CGE Model Simulations of the Impact of the SADC FTA on the Republic of Madagascar (March 2007). IMF Working Papers, Vol. , pp. 1-30, 2007. Available at SSRN: https://ssrn.com/abstract=976119

Jean-Jacques Hallaert (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Groupe d'Economie Mondiale (GEM) ( email )

28, rue des Saints-Pères
Paris, 75007
France

HOME PAGE: http://gem.sciences-po.fr

Register to save articles to
your library

Register

Paper statistics

Downloads
295
Abstract Views
1,299
rank
102,801
PlumX Metrics