Poverty, Welfare and Income Distribution Implications of Reducing Trade Costs Through Deep Integration in Eastern and Southern Africa

Edward Balistreri, Maryla Maliszewska, Israel Osorio-Rodarte, David Tarr and Hidemichi Yonezawa
Authors registered in the RePEc Author Service: Israel Osorio Rodarte

Journal of African Economies, 2018, vol. 27, issue 2, 172-200

Abstract: We examine regional and unilateral policies to reduce three kinds of trade costs in Eastern and Southern Africa. Our article is the first CGE-microsimulation model to assess the impacts of the reduction of trade costs on poverty and income of the poorest 40% of the population. We estimate significant reductions in the poverty headcount and increases in income for the poorest 40%. We find that trade facilitation would increase the ‘share’ of income of the poorest 40% of the population, however, services reform decreases the share. We find and explain why our three types of trade costs have very diverse impacts across the countries.

Keywords: poverty; income distribution; microsimulation; Tripartite free trade agreement; deep integration; computable general equilibrium (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (5)

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