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

Margaret Chitiga (), Margaret Mabugu and Tonia Kandiero ()
Additional contact information
Margaret Chitiga: Department of Economics, University of Pretoria
Tonia Kandiero: National Treasury

No 200715, Working Papers from University of Pretoria, Department of Economics

Abstract: The paper uses a micro-simulation computable general equilibrium (CGE) model to study the impact on poverty of a complete removal of tariffs in Zimbabwe. The model incorporates 14006 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.

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-afr, nep-cmp, nep-dev and nep-int
Date: 2007-09

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Related works:
Working Paper: Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe (2005)
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Persistent link: http://EconPapers.repec.org/RePEc:pre:wpaper:200715

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