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Computable General Equilibrium Micro-Simulation Analysis of the Impact of Trade Policies on Poverty in Zimbabwe

Author : Chitiga, Margaret and Kandiero, Tonia et al.

Publisher: Poverty and Economic Policy Research Network

Year: 2005

Page Numbers: 35

Acc. No: 3070

Class No: 382 CHI

Category: Books & Reports

Subjects: Trade

Type of Resource: Report

Languages: English

This paper uses a micro-simulation computable general equilibrium (CGE) model to study the impact of trade liberalization on poverty in Zimbabwe. The model incorporates 14006 households derived from the 1995 Poverty Assessment Study Survey. The novelty of this paper is that it is one among a small group of papers that incorporates individual households in the CGE model as opposed to having representative households, allowing for a comprehensive analysis of poverty. The complete removal of tariffs favours exporting. Poverty falls in the economy while inequality hardly changes. The results differ between rural and urban areas. The paper aims to establish the longer-term impact of trade liberalization on incomes, poverty and inequality.