Effect of the COMESA-SADC-EAC Free Trade Area on the East African Region: Towards a New Economic Geography

Rodgers Mukwaya and Andrew Mold

No 332536, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This study evaluated the economic effects of proposed COMESA-SADC-EAC Free Trade Area on production, value of trade and distribution of welfare effects in the East African region. We used the Global Trade Analysis Project(GTAP) computable general equilibrium model and database to measure the static effects of the proposed FTA on welfare, trade flows, prices, consumption and production in the region. Simulation results from the GTAP model suggest a net welfare gain of $10.7 billion, however the distribution of these gains will be heavily skewed with 92% of welfare gains going to consumers in Egypt, South Africa and Zimbabwe.

Keywords: International Relations/Trade; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 23
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332536

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