Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe
MPIA Working Paper No. 2005-01
37 Pages Posted: 14 May 2007
Date Written: June 2005
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 exportoriented 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, Microsimulation
JEL Classification: C68, D31, D58, I32
Suggested Citation: Suggested Citation