The impact of tariff removal on poverty in Zimbabwe: A computable general equilibrium microsimulation

Margaret Chitiga, Margaret Mabugu and Tonia Kandiero

The Journal of Development Studies, 2007, vol. 43, issue 6, pages 1105-1125

Abstract: The paper uses a microsimulation computable general equilibrium (CGE) model to study the impact on poverty of a complete removal of tariffs in Zimbabwe. The model incorporates 14,006 households derived from the 1995 Poverty Assessment Study Survey. This paper's novelty 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. Using individual households allows for a comprehensive analysis of poverty. The complete removal of tariffs favours exporting sectors. Poverty falls in the economy while inequality hardly changes. The results differ between rural and urban areas.

Date: 2007
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