Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe

Margaret Chitiga, Tonia Kandiero and Margaret Mabugu

Cahiers de recherche MPIA from PEP-MPIA

Abstract: 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 export-oriented 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; Micro-simulation; Poverty; Inequality (search for similar items in EconPapers)
JEL-codes: C68 D31 D58 I32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp and nep-int
Date: 2005
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Related works:
Working Paper: A Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:lvl:mpiacr:2005-01

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