A CGE model analysis of effects of adjustment to terms of trade shocks on agriculture and income distribution in Kenya

Stephen Karingi and Mahinda Siriwardana ()

Journal of Developing Areas, 2003, vol. 37, issue 1, 87-108

Abstract: A simulation analysis using Kenyan economy CGE model is undertaken to look at the effects of two important terms of trade shocks facing Kenya in the mid-1970s. It is evident that the Kenyan economy is very vulnerable to external shocks. Consequently, as these shocks invariably created internal and external imbalances, the policies pursued by the government were important. Some of these policies are analysed in this paper. What seems to be an important outcome is that higher import tariffs and indirect taxes may have reduced the positive impacts of the export boom that were being experienced by the economy at the time, albeit marginally. However, these policies had been introduced as the government tried to grapple with the adverse effects that the oil-price shock seemed to have created in the economy. Hence, the policies may not be seen as an indication of government's mismanagement given that it may not have been aware of the impending windfall from the boom.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://muse.jhu.edu/journals/jda/summary/v037/37.1karingi.html

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.37:year:2003:issue1:pp:87-108

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().