Economic implications of foreign exchange rationing in Ethiopia

Paul Dorosh (), Sherman Robinson and Hashim A. Ahmed

No 3, ESSP research notes from International Food Policy Research Institute (IFPRI)

Abstract: This paper examines macro-economic developments in Ethiopia between 2004/05 and 2008/09, focusing on the external accounts and the real exchange rate. Simulations using a Computable General Equilibrium (CGE) model of Ethiopia's economy show that, compared to a policy of foreign exchange rationing, a policy of real exchange rate depreciation and no rationing improves economic efficiency and welfare of all households except those who receive the rents (excess profits) arising from rationing.

Keywords: currencies; computable general equilibrium models; prices; economic growth; import controls; agriculture; welfare economics; development policies; globalization; markets; Ethiopia; Eastern Africa; Sub-Saharan Africa; Africa (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (7)

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https://hdl.handle.net/10568/162063

Related works:
Journal Article: Economic Implications of Foreign Exchange Rationing in Ethiopia (2009)
Working Paper: Economic implications of foreign exchange rationing in Ethiopia (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:fpr:essprn:3

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