Impacts of Service Sector Policy Reform:CGE model Analysis based on Sri Lanka

Asankha Pallegedara

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the macroeconomic effects of services sector reform policies using two computable general equilibrium models of Sri Lankan economy. First model assumes perfect competitive market and second one assumes monopoly supplier economy. Both models have been calibrated using Sri Lanka’s social accounting matrix currently available. Impacts of both services sector production tax reduction and import tariff increase have been simulated. Simulation results imply that reduction of services sector production tax is better than increase of import tariff in both perfect competition case and monopoly supplier case.

Keywords: Sri Lanka Services sector; Production Tax; Import tariff; CGE model (search for similar items in EconPapers)
JEL-codes: D5 (search for similar items in EconPapers)
Date: 2010-08-20
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