The SADC region and EPA/EBAI – trade balance analysis

Mphumuzi Sukati

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the potential trade balance outcomes of the EPA/EBAI policies in the SADC region using the GTAP7 model and database. The analysis of these policies therefore make conclusion on SADC member states’ changes in trade balance overall, per commodity groups and on overall welfare outcomes as a result of these policies. The study has found that although the EPA/EBAI initiative policies will potentially result in overall welfare gain in the SADC region this welfare gain will only be 6% of the EU27. Analysis of trade balance outcome reveals that the SADC ACP region will suffer a negative trade balance of US$1596.8 million with the EU on the other hand having a positive trade balance of US$105.61 million. Since a positive trade balance is important for sustainable development of nations, these results once again throw into doubt the potential sustainable economic growth benefits of these policies to ACP countries.

Keywords: Key words: Trade Balance; Welfare; EPA/EBAI Policies; Sustainable Development; Sustainable Economic Growth (search for similar items in EconPapers)
JEL-codes: A11 A13 B41 D50 E61 N17 (search for similar items in EconPapers)
Date: 2011-07-04
New Economics Papers: this item is included in nep-afr
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Related works:
Journal Article: The SADC region and EPA/EBAI - trade balance analysis (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:31992

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