Towards an Explicit Modeling of Trade Facilitation in CGE Models: Evidence from Egypt

Chahir Zaki

No 515, Working Papers from Economic Research Forum

Abstract: This paper develops a dynamic computable general equilibrium (CGE) model incorporating trade facilitation aspects. This paper’s contributions are twofold: theoretical and empirical. First, this paper attempts to model trade facilitation explicitly in a dynamic CGE model applied. On the empirical side, I estimate, not assume, the tariff equivalent of red tape and related procedures at sectoral level. I use the ad valorem tariff equivalents of time to import and to export that have been estimated in a companion paper and I take into account the cost of such a process. To do so, I modify the Exter model that is calibrated on the Egyptian social accounting matrix of 2000/2001. My main ?ndings show that, when trade facilitation is modeled precisely, i.e. by taking into account its cost as well as the tariff equivalents of its aspects, the impact of such a process is reduced. Meanwhile, its impact remains higher than trade liberalization. Moreover, some sectors witness a significant expansion more than others, especially processed food, garments and high value added products.

Pages: 43
Date: 2010-01-04, Revised 2010-01-04
New Economics Papers: this item is included in nep-ara and nep-cwa
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Towards an explicit modeling of trade facilitation in CGE models: evidence from Egypt (2010)
Working Paper: Towards an Explicit Modeling of Trade Facilitation in CGE Models: Evidence from Egypt (2009)
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